Alternative marketing thinking


Online Savings – The Bank’s Perspective

With people cashing in on the high interest rates offered by online saving schemes from the likes of HSBCDirect and ING Direct, one may ask if the banks are really reaping profits from them. Having burnt their fingers earlier in the 1990s when banks had introduced standalone Internet banks that paid high rates on checking accounts, the first bank to take up this initiative again was ING when they introduced their Orange account in 2000. True, banks lose out on the high interest rate they promise, 4.69% versus the 0.54% in ordinary savings accounts but what they do garner is customer acquisition. Also, their brand name spreads to places where they may not even have a branch. The Federal Reserve also has a role to play in this trend, because when they up the rates, banks will follow too. More on this story here.


Single Post Navigation

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: