Are instant access accounts always what they seem?

The majority of savers like the comfort of knowing that if they require immediate access to their money, they can get it. But with some accounts this comes at a price.

Michelle Slade, analyst at Moneyfacts.co.uk, comments: "Most instant access and no notice accounts allow you to access your money as and when you want it. But on almost a quarter of accounts there are some strings to be wary of when making withdrawals. Some accounts either reduce or pay no interest in the month a withdrawal is made, while others allow only a set number of withdrawals a year. One lender Leeds BS will actually close you account if you make more than two withdrawals each year on its Premium Access and Postal Max accounts.

"Some of these accounts pay market-leading rates but just by making a few withdrawals a year, you could lose out on hundreds of pounds of interest. The Britannia BS Homesaver is aimed at those looking to save a deposit to buy a house. If you needed to access your money and made 5 withdrawals a year on a balance of £10K you would of lost £563.72 in interest.

"Thankfully most institutions have products which don't have penalties for making withdrawals and still pay a high rate on interest. Birmingham Midshires e-Saver pays 6.50% and Anglo Irish Bank Easy Access Deposit pays 6.05%.

"Savers need to make sure they check the terms and conditions before signing up for any account. Make sure the account thoroughly suits your needs, otherwise you could see yourself substantially out of pocket just for accessing your own money."