What is an "Instant Access Savings Account"

As the name suggests, instant access savings accounts give you immediate access to your savings, without incurring any penalties. Or this was always what they used to be unfortunately some instant access accounts now have penalties attached meaning if you make more than a certain number of withdrawals the interest rate will drop. Generally instant access savings accounts will offer a lower rate of interest compared to savings accounts that require you to give notice before withdrawing money. But currently if you shop around you will find that there are instant access savings accounts available that offer higher interest rates than a lot of the notice savings accounts. To make your life even easier above are the best and top instant access account we have found in the UK savings market. One final thing to consider is that the leading accounts often offer a bonus interest rate for first 12 months so after 12 months you need to check that the rates offered are still competitive and if not consider switching to a different savings account.

The Best Instant Access Savings Accounts (updated 05/07/2010)

SAVINGS ACCOUNT PROVIDER	AER	MINIMUM INVESTMENT	INSTANT ACCESS SAVINGS ACCOUNT DETAILS	FURTHER INFORMATION
TESCO FINANCE	2.75%	£1+	Includes 1.75% Introductory bonus for first 12 months.
SANTANDER	2.50%	£1+	Abbey E-Saver is an easy to manage online savings account with penalty free instant access. Comes with an ATM card.
PRINCIPALITY BUILDING SOCIETY	2.40%	£1+	Manage your savings online
ING DIRECT	2.75%	£10+	After 12 months the rate will revert to the ING Direct Savings Account variable rate, currently 0.50% AER (0.50% gross p.a)
HSBC	0.75%	£1+	HSBC online bonus saver 0.75% AER including bonus interest on savings account. £1-£50,000 when you don't make a withdrawal. If you need your money you will get 0.25% AER annual equivalent for month withdrawal made. Account is online only and withdrawal of funds is via internet banking by transfer to another bank or savings account.

The worst Instant Access Savings Account

08/04/2010 The instant access savings account that was filling this space has been withdrawn by the supplier but we will shortly take a look to find some new ones that are paying 0% on easy/instant access.