If you are to take a look at the various types of accounts available and you want to compare them, you will come to realize that there are varieties of accounts with different degree of features and flexibility. The most popular types of accounts are the term deposits, high interest savings and instant access savings accounts.

With the term deposit account, holders are liable to get a fixed rate of interest for an agreed term which may be between few months to several years. Also for this account to be opened, a substantial minimum amount of money as deposit is required. High interest savings accounts on their part enable the holders to earn higher rates of interest but usually they make use of a variable rate and in addition to this they can be very accessible if you link them to separate savings account or transaction account. Though they may be accessible, it is usually the case for high interest savings to require a minimum amount of deposit or restrict the number of withdrawals on monthly basis in order to allow the account to qualify for high rate.

On the contrary, instant access savings accounts allow its customers to gain access at any time to their deposits simply by making use of the ATM card. For you to benefit from this maximally, as a holder you would be expected to maintain a minimum balance on your instant access savings account which may range from $50 to a high amount of $5000. Because it is a savings account it will definitely earn interest income for you, but this rate will be determined by the amount of money deposited. This rate will not be as high as that of a high interest savings account.

Instant access savings accounts can also be commonly used a transaction account for everyday. If on the other hand you have a high interest savings account then you can link it as your link transaction account to your instant access account. You may still link these two accounts even when they are operated by different banks. Having the two savings accounts in the same institution will be a smart move as you can easily transfer funds from your high interest savings account into the instant access account, thereby making your withdrawals when you want.

The main facility that enables this account to function properly is the ATM card. With it, you have a 24 hours access to your deposit with maximum convenience. Other benefits include phone banking and an online banking for 24 hour of the 7 days of a week. The convenience of the ATM card is not only restricted to quick withdrawals of funds from ATM networks available in financial institutions especially banks. ATM cards can also allow you quick access to your link account with maximum convenience anywhere you want to withdraw the money and at any time. Besides there are other benefits of operating an instant access savings account which may include direct crediting of your income, transferring funds by internet banking or by telephone.