Easy access savings accounts offer greater withdrawal flexibility than other savings accounts. However, to get this flexibility, you must forfeit some earnings potential.
Getting the best instant access savings account
In order to get the benefit and the best rates from an instant access savings account, you may find yourself moving your money about a fair bit. However, through doing so, it is possible to get an attractive savings account which meets your needs and still offers a decent return on your balance. You should always keep an eye on what deals are currently being presented by other providers on the market. If, after comparing the market, you find that there is a better deal elsewhere then you should definitely consider switching your provider.
When selecting a provider to hold an account with, it is important to remember to look out for key features that you know you will require. For instance; if you are proficient in your use of the internet and think that making use of online banking is something which would appeal to you, then this may give you a wider range of providers who now use online banking as their preferred method of use for this account type. This may also mean that you receive a higher rate of interest by making use of an online instant access savings account. However, you will still have to check this is offered as a feature of the account, as not all providers will have online banking as a standard element.
Alternatively, if you know you will require branch access or prefer to do your banking the way you always have, then you may be better served opting for a branch savings account.
You should also consider that while instant access does allow you the freedom of withdrawing your finances at any time, you should remember that this may be a temptation to dip in to your savings. It may be worth looking into moving your money over to a fixed term savings account once you have built up a decent amount.
Savings accounts can also be opened for as little as £1 and after that your deposit will remain open, meaning you can keep the account until you are ready to use it. However, you may miss out on the best opportunity to get the best rates by doing this.
Considerations for an instant access savings account
In terms of managing day-to-day finances, it can be useful to have a savings account with instant access for each 'occasion' you are saving for, for example: one for a holiday, one for Christmas and so on.
Plus, you may want to consider getting an instant access savings account for the portion of your wages that would usually sit untouched in a standard current account for the majority of the month until it is needed to pay bills, as you will likely earn more interest on your money this way.
Using this method is especially easy considering there is no limit on how many standard instant access savings accounts you can have, and most require a very small initial deposit in comparison to other types of accounts.