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).
Ulster Bank
Loyalty Saver
Pays: 5.20% AER
Minimum opening balance: £5,000
Maximum balance: N/A
What are the limits on withdrawals? You can withdraw or transfer money to any other account based in the UK (up to the daily limits).
The small print: Easy access. Available to existing Ulster Bank customers only who hold a current account with the bank. Interest drops to 2.25% below £5,000 balance. Interest is paid annually.
Find out more at: Ulster Bank
Flagstone
Instant Access (provided by SmartSave)
Pays: 5.07% AER
Minimum opening balance: £10,000
Maximum balance: £1m
What are the limits on withdrawals? You can withdraw money at any time.
The small print: Easy Access. Interest is calculated and paid daily. This account is available exclusively through the Flagstone Investment Management platform.
SmartSave 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 SmartSave will also count towards this limit.
Find out more at: Flagstone
Monument
Easy Access Savings
Pays: 5.03% AER
Minimum opening balance: £25,000
Maximum balance: £2m
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
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
Principality
Online Bonus Triple Access Issue 2
Pays: 5.00% AER
Minimum opening balance: £1m
Maximum balance: £500,000
What are the limits on withdrawals? You can take money out three times every calendar year.
The small print: Three withdrawals can be made from the account every calendar year. Interest rate includes a 1.40% bonus for the first 12 months. Interest is paid annually.
Find out more at: Principality
Rates correct as at 22.07.24
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?
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