An instant access savings account is an account that enables savers to get some interest. It also allows you to withdraw money whenever you need it. You can save as little or as much as you want each month. A saver can often open an account with an initial deposit of as little as £1.
As the name implies, you can instantly save your money and withdraw it whenever you wish. The providers you choose to save your cash with will pay some interest to you as long as you save with them.
If you have some money to save and are not sure what to do with it, putting it in an easy-access savings account is a good first step. The wise should save up their extra cash for emergencies where cash is needed as soon as possible.
It may not be that the cash you are saving is really useless to you, but you can save from your earnings for future plans. It could be more interesting to know that, as little or as much as your savings can be, the bank you are saving up with will be adding some interest for you.
An instant savings account is ideal for you if you want an everyday savings account that can give you instant access to your savings while you are still earning some interest. If you are interested in knowing what instant access savings are about, then this article will guide you. Continue reading to learn more.
What is an instant access savings account?
An instant access savings account is an account that a person can create with their preferred bank to help them save their money. Any bank you choose for your savings will be able to earn interest on your savings as well as withdraw your savings at any time you wish.
There are many important reasons why a person should save. It could be for a future event, for a business establishment, or anything at all you need to save up for.
Meanwhile, this easy access to savings usually comes at a price, and the interest paid on this type of savings account is always the lowest out of all savings accounts you would come across.
Finally, an instant access savings account also called easy access savings, is a type of bank account that pays you some interest on your savings. With this savings account, you can have immediate or within 2 to 3 access to your funds when you need them free of any penalty.
With this type of savings account, it is only that you will be paid some interest rates for your savings but also that, your saved money will be for you to take out at any time you wish to without having to pay any penalty to take it out.
Who is instant access savings meant for?
If you have a lump sum of money you want to save up in case of any emergency or for a future event or anything of that sort, then a regular savings account might be a better option for you to save.
Do you think you always need to access your money quickly? If so, then instant access savings is an excellent option for you. The savings account type allows savers to be able to access their money at any time they want.
If you have some money to save and you do not know what to do with it, putting it in an easy-access savings account is a good first step.
However, bear in mind that some account providers usually limit the number of penalty-free withdrawals you can make per year, hence the need to check out the terms and conditions of your provider before going ahead to save with them.
So, if you fall into the category of people who either have some money that they wish to save up for future use, for some special events in the future, in case of an emergency or if you just do not know what to do with the money, you think it is right to save it against misplacement or even loss.
Finally, if you are interested in a way to save your money so you can access it anytime you want to. If all the things listed above are the case for you, then instant access savings is the right option for you.
Why do I need instant access to savings?
If the question you have in mind is whether or not instant access savings is for you, then that is a very important question to ask. First of all, an instant access savings account is a savings account that you create with any bank of your choice for you to be able to access or take out your money easily.
For that reason, then, if you want to open an account to save your money so you can access it anytime you want to, then you should go for an instant access savings account.
The free and easy access that owners always have to their savings is a major factor for consideration.
Furthermore, an instant access savings account allows you to save up your money at your own pace, there is no mapped-out amount of money that you are expected to be paying in at any given time.
You can choose to deposit one dollar for one month and another dollar after two months. That is how convenient it will be for you. Finally, you can earn interest rates that are not available to you in your current account. Opening an instant access savings account will expose you to the opportunity to indirectly double your money.
The bank you choose to save with will always add interest rates to your savings account, which means that, depending on the interest rate of the bank, you may be able to withdraw even double your savings by the time you want to withdraw.
Pros and cons of instant access savings account
If your interest is to open an instant access saving account in the UK, you can open this type of account no matter where you are. It is very important for you to know the things that are involved and those that are not involved in the instant access savings account so as not to be caught unawares by anything you may come across while owning the account.
Below are the pros and cons involved in the instant access savings account the UK:
Pros
Below are the pros associated with instant access savings accounts;
- There will be no penalties involved when you want to take out your money
- You can access your cash anytime you wish to without restriction
- No large sum of money is needed for you t open an account
- It is also possible to add or deposit any amount of money you want to, anytime, to your account.
You can also see the pros of an instant access savings account as the advantages you stand to get by opening an account.
Cons
The cons of instant access savings include:
- Savings account owners may need to pay tax on their interest
- If the interest rate that your bank gives is below the inflation rate, then the spending power for you may drop in value
- Although you can easily access your money under this type of savings account, but the interest rate it pays is lower than other savings accounts.
What is the best instant access savings account bank?
Although there are many banks out there that allow customers to open an instant access savings account, Bank of Scotland has nearly the most favorable service and offer.
The bank allows you to switch your savings account from an access saver, monthly saver, or fixed rate bond to an instant access savings account without much stress. This offer makes it appear like the best. When your access savings or monthly savings is coming to the end of its term and you are likely not saying anything concerning them, they automatically change it for you.
Even though your account’s change to instant access savings, is automatic, the interest rates that you will earn are still going to remain. There is no consideration as to whether the change was automatic or not.
You can also withdraw your money whenever you want to, which is the common advantage that all the providers give.
Conclusion
An instant access savings account is a type of savings account that allows you to save as much or as little money as you wish and also be able to withdraw it anytime you wish. There are different banks; almost every bank allows you to open this account, and they have different interest rate offers, so it is best for you to compare different offers to be able to find the best for you.
FAQs About The Instant Access Savings Account
What does instant access savings account mean
An instant access savings account is an account type where you can be able to save and withdraw your money anytime you wish to and save as much and as little money as you want to also.
How much do i need to open an instant access savings account
You can usually open an instant access savings account with as little as £1,
What is instant access savings account for over 50's
“Instant access savings account for the over 50s” means a separate instant savings account that is mainly for the aged people who are over 50 years.
Can i open an instant access savings account for my child
Yes. Many banks, like the Bank of Scotland, provide for you to open an account for your child.
How can i open an instant access savings account
You can open an instant access savings account by first comparing the services and interest rates of different banks, and then going for the one that is best suitable for you.
