Instant access savings accounts are one of the most common type of savings accounts. They offer all the benefits of a savings account with the added benefit of being allowed the freedom to access your money as and when you please without any restrictions.

All banks and building societies offer instant access savings accounts with each offering several different accounts all with different names and with varying interest rates paid. Many instant access accounts also offer tiered interest rates on their accounts as an incentive, so the more you save the more interest you'll earn.

Opening an instant access account is very simple and most accounts can be opened with online. Some accounts can be opened with as little as £1 whilst other may ask for more of a start up fund.

Interest is normally paid annually on the aniversary of the account however there are some accounts that do pay interest to your account monthly at a slightly lower rate of interest.

Benefits of instant access savings accounts?

One of the main benefits of instant access savings accounts is the freedom of having access to your money as and when you wish. They are great for those who are new to saving as you money is alway available in an emergency.

Opening and using the account is a very simple process and doesn't hide any potential disadvantages in the smallprint.

Negatives of instant access savings accounts?

Interest rates are normally slightly lower on these accounts because of the freedom of having access your money as when you please. It can also be very easy to get tempted dip into your savings and spend.

If you have reasonable amount of money already saved, it may be worth your while looking into investing it into longer term account so that you can benefit from the higher interest rates.