Easy Access / Instant Access Accounts

Easy Access and Instant Access savings accounts allow you to save and withdraw funds when you want. There will be no charge levied on you if you decide to take money out of the account and, with most of these accounts, no penalty in the form of loss of interest although with some you may lose the interest for the month in which you make a withdrawal.

Instant access savings accounts allow you immediate access to your money as cash via an ATM, over the branch counter, or same-day CHAPS bank transfer. Easy access savings accounts offer funds returned by cheque in the post or BACS transfer - although there's no penalty and no real delay, your money's not instantly realisable as cash.

Interest rates

Take a close look at the interest rate on offer. Is it calculated annually/monthly, etc., (this calculation will affect the AER). Does it include a short-term bonus rate? What rate will it revert to at the end of the bonus period? Is there a 'guarantee' - say that interest will not fall below a certain amount (usually linked to the Bank of Englands base interest rate).

Once you've taken a close look at the interest rate on your savings account, keep looking at it. 'Best Buys' too often have a habit of turning into poor relations over time. Keep an eye on your interest rate to make sure it remains competitive.

Last Updated: April 2008 © Moneyextra.com

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