You can secure financial stability when you look into having instant access savings accounts. Because of the fluctuating economic crisis that everyone is experiencing, you should find ways that will help you deal with keeping your money safe and secure. While there are a lot of great ways for you to get instant access savings accounts to work for you, you must first look into what these accounts have to offer for you. This will give you plenty of time to consider whether an instant access savings account would be a good idea for your time and money, thus saving you the headache of actually regretting any disadvantages you might have overlooked when you have signed up for it.
Why Instant Access Savings Accounts are Ideal
One of the main advantages that an instant access savings account would have to offer is the privilege for you to access your money anytime you want. Compared to other kinds of accounts like fixed rate accounts, which require you to lock up your money for a considerable amount of time – five years, at most – you will not be burdened with the trouble of knowing that you have money but are unable to get it because of the terms you signed up for. You can of course, but there will be penalties that you will suffer from with fixed rate accounts.
The characteristic of being able to withdraw money from your account anytime holds true among other kinds of accounts, but instant access savings accounts differ in some ways. There are these normal savings accounts, which can fall under variable rate accounts. These would have high interest rates that can fluctuate, depending on the economical state of things.
With instant access savings accounts, you are bound to find rates that can be workable to your economic capabilities. This makes an instant access savings account quite an attractive choice for those who want to open up an account. Because they offer lower rates than traditional savings accounts, more financial institutions are coming to grips with having them offered to clients. This also makes it quite competitive for these banks, and you might find it difficult to pick which one you would want to open an account with.
Trade-offs of Instant Access Savings Accounts
You will find that an instant access savings account is actually quite an attractive option, but there is a trade off. Because an instant access savings account provides you with an easily optional way of withdrawing your money anytime, there is a lower rate of earning more money from your savings account within the bank.
This doesn’t just talk about the terms that you will sign up for, which will clearly show that an instant access savings account will not have as much earning rate as a traditional savings account. It can also apply to the fact that because your money can be withdrawn any time you wish, you will have to deal with the fees usually charged when it comes to money withdrawal. One way that you can actually work on withdrawing money on an instant access savings account is to do so for a big amount, like taking money in bulk. But that will leave you with smaller money left in the bank, which would definitely get your money to earn at a lower rate. In any case, this is a sacrifice that you will only have to deal with for the accessibility of money.
Ease and Convenience with Instant Access Savings Accounts
Even with such stated disadvantages that can pose for anyone, people will still find that an instant access savings account would be a good idea. Because everyone needs to go about with money all the time, you would need to have it handy. Banks will do the safekeeping for you, true, but what if a situation arises that calls for the needs to spend considerable amount of cash? The fact that an instant access savings account will provide you the money you need without any questions makes for such convenience, and if you have a considerable amount stored, there’s always a good chance that you can replace what you have taken out.
Another thing that makes instant access savings accounts quite attractive is the fact that banks would not be allowed to state a probationary period for you when it comes to withdrawal, which is often the case when new accounts are opened within financial institutions. There is usually a waiting period for one to get access to his money when he opens up an account, the standard of which usually holds for about 30 to 90 days, which is a month to three months. Imagine not being able to touch your money at that span of time, which would have been possible if you got an instant access savings account instead.