Savings Accounts: Access Types

One of the main issues of savings accounts is the access to funds stored in the account. Some banks limit the access to funds according to certain terms and conditions, while others allow you to access your funds anytime you want. What are the different access types offered by banks and what benefits do they offer? That is what we are going to discuss in this article. Many modern savings accounts come with instant access policy. This means you can access your funds anytime you want. The bank will even provide you with an ATM card for making withdrawals, or you can also visit your local branches to make withdrawals. Although instant access is beneficial, you may not get the same high interest rate you can get from savings accounts with tighter access terms and conditions. Aside from the instant access savings bank product, some banks also offer fixed-term savings accounts. You cannot access your funds for a predetermined period of time; if you do need to make a withdrawal, the bank will charge you with a penalty and a portion of the interest may be written off the savings accounts. In return for the fixed savings account term, you will most likely get a substantially higher interest rate.

In order to bridge the gap between instant access and fixed term savings accounts, banks now offer the so-called easy access savings accounts. The easy access savings accounts usually come with a higher introductory interest rate; you can enjoy the higher interest rate for a period of 6 to 12 months. During the introductory period, you need to avoid making a withdrawal in order to enjoy the higher interest rate. Once you do make a withdrawal, the interest rate will be lowered to the normal market level but the bank will not charge you with a penalty.