Instant access savings account – the flexible way of investing your money
Instant access savings accounts are a very flexible type of investment that earn their customers a relatively high interest. For this reason, instant access savings accounts are quite popular.
This type of account does not have a fixed duration, disposal limits or a cancellation period which enables customers to access and manage their money at any time – a clear distinction from the classic savings account.
Customers pay for this flexibility with the lack of a fixed interest rate. This means that banks can adjust the interest rates at any time, based on the current developments in the financial market.
Costs and services
Usually, you will not be charged for opening an instant access savings account. An activity fee is quite uncommon for this account type, as well. The interest will be credited in regular intervals – normally on a monthly basis. Thus, you can’t go wrong with this type of investment.
An instant access savings account is not made for payment transactions, which is why all deposits and withdrawals have to be made via a connected bank account which is normally the customer’s current account. If you want to access your money, you need to consider that it will take some some time to transfer the money between the accounts. Your money being instantly accessible is therefore to be seen relatively.
How to find the right instant access savings account
As with most financial products, there are some instant access savings accounts that offer better conditions than others. Generally, it can be said that direct banks offer higher interest rates than classic bank branches. This has to do with the costs for operating the branches and providing personal services locally.
If you want to be sure that your money is always invested in the instant access savings account with the best interest rates, so called “instant access savings account-hopping” might be for you. For this extreme way of investing your money, you open several accounts and always transfer your money to the account which offers the best interest rates at any given time. However, this is very time consuming and might not be for everyone.