Instant Access Accounts: Easy Savings, Immediate Access to Cash

The past month has seen an increase in the instant access savings account market and with the current financial crisis plaguing the region, this could be good news for UK residents. Savings investments afford people a considerable amount of security what with the unpredictable nature of the economy. Recently, more than five financial institutions have introduced instant access accounts with interest rates ranging from 2.8 to 3.25 percent.

Why so Popular?

Although this type of savings account offers lower interest rates compared to a traditional one, it appeals to a lot of consumers because it allows them to earn whilst providing them immediate access to their money when they need it. Some institutions don’t impose restrictions on withdrawals such as giving notice before taking out cash or paying penalty fees.
Apart from accessibility, the bonus rates offered are also an attractive draw. These bonus rates are usually tiered and run for a certain duration only depending on the financial institution that you invested in.

New Accounts Available

The most recent easy access account products launched are from Alliance and Leicester and Coventry Building Society. Under the Alliance and Leicester online saver account, consumers will be paid 3.15 percent and up to 2.65 percent in bonuses.
Coventry Building Society is offering a higher rate on instant access accounts — 3.25 percent. However, this investment is available only to residents aged 50 or older.
The Principality Building Society is offering a saver account that will earn you 2.85 percent in interest plus a bonus of 1.20 percent for the first year. Take note that this type of account can only be registered in and maintained through their online system.
Another institution that offers more than 3 percent in interest is the Nottingham Building Society, which will pay its savers 3.15 percent on accounts. A minimum of £1,000 pounds is needed to open this account however, and the institution requires that you give notice before withdrawing money.

A Word to the Wise

Whilst this type of savings account presents appealing features, it is of import that you get a thorough understanding of how it works before you decide to invest your money. Bonuses are often applicable only for a limited amount of time and after a few years, your savings might not be earning as much as you’d expect.
Keep track of your savings account so you know when to start moving your resources elsewhere. After a year, it may be practical to move your investment to a higher paying, regular savings account.