Internet banking rises in popularity

by Richard Kilner

Story link: Internet banking rises in popularity

The internet is becoming an increasingly popular medium for banking, according to new research by the Halifax (now part of Lloyds Banking Group).

According to the bank, 68% of savers now have an online savings account, and official statistics from the ONS show that almost half (49%) of internet users engaged in online banking in 2008, up from 29% in 2003.

Men are more likely to use online savings than women, with 64% and 49% respectively managing savings over the internet.

As might be expected age is also a factor, with the 25-34 age bracket most likely to use the internet for banking.

A more surprising finding is that more people aged over 55 prefer using online banking to manage savings to visiting their local bank branch.

Savers have been hit hard by the Bank of England’s recent run of rate cuts, which ended this month as the 0.5% rate was held.

Despite the meagre return available on savings only 13% cite the rate of return as a factor when considering which account to choose.

Instead the method of management is the predominant issue, selected by 46% as an important factor.

Head of Halifax Savings products Flavia Palacios Umana has explained that internet banking is particularly attractive because it enables savers to manage their accounts at any time of the day or night, in the convenience of their own home.