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Online Savings Accounts - Access Your Cash

Article Summary: When deciding on a savings account you decide what is more important, easy access to your money or long term returns. While accounts like term deposits offer the best rates they might not be suitable if your likely to need your money at short notice. An instant access savings account offers instant access via linked accounts with the same bank or direct ATM access.

When choosing a savings account you will find that there are a few main types of account to choose from depending on your needs. These include high interest savings accounts, term deposits and instant access savings accounts.

A term deposit offers a fixed rate of interest for an agreed term, typically ranging from a few months to several years. In additional a substantial minimum deposit is required to open such an account. 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've got a high interest savings account then you can link that account to your instant access account as your linked transaction account.

These two accounts may be linked even if you maintain them in different banks. It can be a smart move to have the two savings accoutns at the same institution as this way you can instantly tranfer funds from your high interest saving account into the instant access account and make withdrawals via that 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. Other benefits beyonf the ATM and EFTPOS access include phone banking and 24/7 online banking.

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.

Article Source: http://www.upublish.info

About the Author:
Richard Greenwood
Richard Greenwood is founder of the Click 4 Group which runs a network of banking comparison sites comparing savings account and credit card offers online.