Instant accesss savings accounts

Are you looking for Instant Access Savings Accounts - as in accounts where you are not penalised for wanting to get access to your own money there and then! Provided by many high street banks and building societies, instant access savings accounts often offer lower interest rates.

The benefits include being able to withdraw money from your account without notice, restrictions or penalties. Because of this flexibility offered by an instant acccess savings account you will tend to have a lower interest rate than a fixed term account or an account which requires notice for withdrawls. However, the money placed in an instant access account will still attract a higher interest rate than if placed in a current bank account.

Typically you can open one with as little as one pound, as well as being kept open with a low balance - an ideal start for someone being introduced to saving money. The interest on this type of account is usually paid once a year, this would be either the anniversary from when the account was open or on a date that is pre-specified by the bank or building society. Some banks and building societies will have the option to pay interest on a monthly basis, however you should note that this facility may incur a small reduction in the rate of interest that is on offer.

Probably the main benefit of this type of account is accessibility - meaning your money is available to you as and when you need it. Of course this comes with a downside, it means any temptation to spend your money can be easily fulfilled. It is often recommended that once you've built up a reasonable amount in your acount you should look at transferring your investment to a long term account that will pay a higher interest rate.