Interest rates are on the rise and if you want to benefit from them, but still want to be able to dip into your savings, then an instant access savings account might be right for you.
Instant access savings accounts, also known as easy access accounts, can be a great option for savers that need a pot of money that they can easily dip into, possibly for emergencies or unexpected expenses, such as a car or boiler repair.
Here’s our rundown of how easy access savings accounts work and where you can find the best rates.
What is an easy access savings account?
An easy access savings account, as the name suggests, is a type of savings account that usually lets you withdraw your money whenever you want.
However, depending on the account, there might be some limits on the number of withdrawals you can make each year, or penalties that apply if you make frequent withdrawals, so it’s important to read the small print to make sure you choose the right account for you.
Some easy access accounts also offer introductory bonuses to lure savers in, but once these disappear, rates often aren’t nearly as favourable. It’s therefore worth checking whether there is a bonus included in the rate, and if there is, make a note of when it finishes in your diary so you can more to a more competitive account at that point.
If you aren’t sure that an easy access account will suit you, have a look at our guide What are the different types of savings account? for some other options you might want to explore.
The best easy access savings accounts
Rates on easy access accounts are changing all the time, so it’s worth keeping an eye on how much interest your account is paying, and switching if you can find better returns elsewhere.
Here are a few of the current best buy easy access accounts (updated weekly, and sourced from savings website Savings Champion).
Oxbury
Easy Access Account Limited Edition 1
Pays: 5.02% AER
Minimum opening balance: £20,000
Maximum balance: £500,000
What are the limits on withdrawals? You can withdraw up to the full balance of your account provided your instruction is received before 1.00pm on a Working Day and passes their payment validation requirements.
The small print: Easy Access. If the balance falls below £20,000, no interest will be paid. Interest is paid monthly.
Find out more at: Oxbury
Monument
Easy Access Savings
Pays: 5.01% AER
Minimum opening balance: £25,000
Maximum balance: £400,000
What are the limits on withdrawals? You can withdraw money at any time without penalty.
The small print: Easy access. Interest is paid monthly.
Find out more at: Monument
Raisin
Rainy Day Saver 2024 Easy Access (provided by Paragon)
Pays: 5.00% AER
Minimum opening balance: £10,000
Maximum balance: £85,000
What are the limits on withdrawals? There is no limit to the amount of withdrawals you can make; however, you are unable to withdraw less than £500 in a single withdrawal transaction and a withdrawal will not be authorised if it leaves your balance below £10,000 – in such circumstances, you must arrange for your account to be closed.
The small print: Easy access. Interest is paid monthly. Paragon Bank is covered by the Financial Services Compensation Scheme, so funds deposited are protected up to £85,000. Be aware that any funds that you already hold with Paragon Bank will also count towards this limit.
Find out more at: Raisin
Close Brothers Savings
Easy Access Account (Issue 3)
Pays: 5.00% AER
Minimum opening balance: £10,000
Maximum balance: £2m
What are the limits on withdrawals? You can request to withdraw funds at any time. Your funds will be repaid by the end of the next business day.
The small print: Easy Access. Interest is paid annually. Rate drops to 1.00% AER should your balance fall below £10k.
Find out more at: Close Brothers Savings
Kent Reliance
Easy access savings account Issue 70
Pays: 4.96% AER
Minimum opening balance: £1,000
Maximum balance: £1m
What are the limits on withdrawals? Withdrawals are permitted without notice or penalty.
The small print: Easy access. Interest is paid on the 5th of April each year or monthly on the last working day of each month.
Find out more at: Kent Reliance
Rates correct as at 20.05.24
Finally…
While many of these banks and building societies allow you to have balances of anywhere from £50,000 to £1m or more, remember that the Financial Services Compensation Scheme only covers balances up to £85,000 with individual banking groups. So if you hold more than this in a single account, and the bank goes bust you might not be able to get your money back.
You can read more about this in our guide Are my savings safe?
Rest Less Money is on Instagram! Check out our account and give us a follow @rest_less_uk_money for all the latest Money News, updated daily.