A study by Birmingham Midshires has found that over half of the savings accounts opened in the last three months have been instant access accounts. Only one in five investors are prepared to lock their money away. Instant access accounts are more popular with women than men.
The research indicated that instant access accounts were most likely to be opened by people between 35 and 44 year olds, while the next age group 45 and 54 year olds tended to prefer an Individual Savings Account.
Our view
We believe that instant access accounts are suitable for short-term savings, but people should be encouraged to think about and save for the longer term. Many accounts are available both online and offline for ease of access. Contact us for advice.