Instant Access Saving Accounts

Instant Access Saving Accounts
There are several types of savings account that you can
open in banks or other deposit-taking institutions. They
usually offer instant access savings accounts, term deposit
savings accounts, and high interest savings accounts.

Term deposits earn fixed rates of interest for the term,
generally not less than one year, and require a substantial
minimum amount to open the deposit. High interest savings
accounts earn higher rates of interest but commonly use a
variable rate, and are also very accessible mainly by
linking it to a transaction account or a separate savings
account. Although accessible, it is not unusual for high
interest savings to place restrictions on the number of
withdrawals or to require a minimum amount of deposit
during the month in order to qualify for the higher rate.

In contrast, instant access savings accounts give you the
convenience of access at any time to your deposit with the
use of an ATM card. You will have to maintain a minimum
balance on your instant access account and this may range
from a low of $50 to a high of $5000. As a savings account,
it will earn interest income, but the rate will depend on
the balance you keep in the account; it will also be lower
than the rate that is normally awarded to high interest
savings accounts.

Instant access savings accounts are commonly used as a
transaction account. If you have a high interest savings
account, it is possible for you to link this account to
your instant access savings account as the linked
transaction account.

These two accounts may be linked even if you maintain them
in different banks. However, if the two savings accounts
are deposited in the same financial institution, you will
have the advantage not only of instant access but also
instant transfer of money from your other linked account
into the instant access savings account.

Your instant access to the savings account is facilitated
mainly by an ATM card, which allows you to have 24 hour
access and maximum convenience. Aside from the ATM/EFTPOS
access, it is also possible to enjoy telephone banking and
Internet banking access.

ATM convenience is not limited to the ability to draw funds
from the ATM networks operated by your bank and other
financial institutions. When you have linked your accounts,
it will be easy for you to make payments on your credit
card through the ATMs, allowing you to save on interest
through prompt payments. Other conveniences possible with
the instant access savings accounts ATM are:

Making fund transfers to and from the linked accounts
Making cash deposits (although this is possible only on
selected ATM units) Checking the balance on your accounts

Aside from making deposits at ATMs, you may also deposit
money into your instant access savings account by:

- Having your incomes credited directly
- Transferring funds from the linked account or your other
savings accounts
- Transferring funds by telephone or Internet banking
- Sending cheque deposits by mail
- Depositing over the counter

For your everyday transactions, you may want to consider
the conveniences available to you through instant access
savings accounts.

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Richard Greenwood writes on a wide range of financial
topics including saving money tips for
http://www.high-interest-saving-account.com.au