Interest rates have started to ease in recent months, so it’s really important to ensure you’re earning the highest returns possible on any savings you have, including those you need to dip into regularly.
Instant access savings accounts, also known as easy access accounts, can be a great option for savers that need a pot of money that is readily accessible, possibly for emergencies or unforeseen 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 move 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 currently available. This table is supplied by Raisin UK and is updated weekly.
Top 5 Easy Access accounts
by Raisin UK
Interest (AER): 4.52%
Interest on £5,000:
+£229
Guarantee:
£85,000
Interest (AER): 4.50%
Interest on £5,000:
+£228
Guarantee:
£85,000
Interest (AER): 4.49%
Interest on £5,000:
+£228
Guarantee:
£85,000
Interest (AER): 4.48%
Interest on £5,000:
+£227
Guarantee:
£85,000
Interest (AER): 4.28%
Interest on £5,000:
+£217
Guarantee:
£85,000
Alternatives to easy access accounts
If you don’t need regular access to your savings, there are various other savings accounts which you might want to consider as a home for your money.
These might include cash individual savings accounts (ISAs), fixed rate savings accounts, regular savings accounts or notice accounts.
For example, cash ISAs are tax-efficient accounts, so any interest you earn won’t be subject to income tax. You also don’t need to declare your cash ISA savings on your tax return. Fixed rate savings accounts, meanwhile, pay a fixed return over a set period (you can also get fixed rate cash ISAs). Terms typically range from one year to five years, so whichever term you go for, you need to make sure you are comfortable with not having access to your money for that period of time.
You can find out more about other savings accounts in our guide What are the different types of savings accounts?
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.
