The Royal Bank of Scotland Instant Access ISA
The Royal Bank of Scotland, commonly abbreviated as RBS, is one of the retail banking subsidiaries of The Royal Bank of Scotland Group plc, together with NatWest and Ulster Bank. They are the first Retail bank to be awarded the 5 star accreditation by Fairbanking.
Is an Instant Access ISA right for you?
Instant Access ISAs are a flexible way to save but generally offer low interest rates as a trade-off for that freedom. If you think you’ll need constant access to your savings then this account is a great option as many other accounts require you to tie up your money for a period or have restrictions regarding withdrawals.
These kind of accounts also generally require lower minimum deposits, often just a £1. Meaning anyone can begin saving. Check with your provider for further details.
RBS Instant Access ISA Review
- You can access your money instantly, there are no withdrawal penalties, so you can take money out whenever you want
- You can save in a way that suits you, either in a lump sum, by standing order or simply pay in when you want to
- You can transfer in so it’s easy to bring all of your cash ISAs together in one place for convenience or find a better deal
- Transfers out are permitted at any time
- Your interest is calculated daily and paid annually on the first business day in April
- You can manage your account with online and mobile banking, in branch or by phone
Useful to Know
- The interest rate is variable, so it can go up as well as down
- Interest is paid annually
- Once you've paid in your full year's cash ISA allowance, you can't replace any money you've withdrawn in the same tax year
Fixed and Variable Rates of Interest
This kind of account will almost always offer a variable rate of interest due to the flexibility of the account. But what does that mean?
Variable Interest Rate – Accounts that offer a variable rate of interest tend to be more flexible in terms of access, transfers and payments in. The rate will change over time so you should always be prepared to move your money if the account you’ve chosen is no longer working for you.
Fixed Interest Rate – Typically, a fixed rate account will provide more interest. This is usually exchanged for tying up your money for a period of time. Usually between 1-3 years.
This means it’s not suitable for people who need regular access to their money as withdrawals are usually not permitted and early account closure will often result in a fee. As the rate is fixed, you will know how much interest you will incur at the end of the year.
It is important to remember that if you make a withdrawal from a cash ISA, any money you take out will still count towards that year's cash ISA allowance. You can't replace any of the money you withdraw, so make sure you really need to before doing so.