Best Easy Access Savings Accounts

What is an easy access savings account?

An easy access savings account, sometimes called an instant access or no-notice account, is a flexible way to save for the future. It allows you to add to your savings and make withdrawals as often as you choose without penalty, although some providers may apply some restrictions.

These accounts pay a variable rate of interest, which means the provider can increase or drop the rate as they choose.

Is an easy access savings account right for me?

Whether you have a lot of money to deposit into savings or not, many people will benefit from having an easy access savings account.

Because easy access accounts allow you to withdraw from your savings, they can act as an invaluable financial cushion if your income drops or if you’re hit with an unexpected expense, such as a car or boiler repair.

It means that you can dip into your savings to cover any necessary costs, instead of having to take out expensive forms of credit, for example.

It’s typically recommended that you aim to have at least three to six months of your essential outgoings in savings in case of emergencies, but any amount you can manage to save is better than nothing.

While there are other types of accounts that may pay higher rates of interest and be more suitable for your longer-term savings goals, easy access accounts can be useful places to store your emergency fund and any short-term savings that you’ll want to use in the near future.

How to compare easy access savings accounts

There are a range of easy access accounts available, each coming with different features and conditions. So, to help you find the best easy access savings account for your situation, it’s worth thinking about the following points when you compare providers:

• What is the interest rate? Check how much an account pays and whether this includes an introductory bonus. The annual equivalent rate (AER) can help you to compare the returns paid by an account over one year, including any bonuses.
• How much do you want to deposit? Most providers will require a minimum deposit to open an account, which could range from £1 up to £10,000.
• Are there any restrictions on withdrawals? Some easy access accounts may only allow a certain number of withdrawals per year while others allow unlimited withdrawals. Also, it’s worth checking how long it may take to receive any money you’ve withdrawn, as some providers may pay it instantly while others may pay it within one working day, for example.
• Do you want interest paid monthly? Providers can pay interest monthly, yearly or on anniversary, for example. Some providers allow you to choose your preferred method while others will only provide one option.
• How do you want to manage your savings? Different providers can offer different ways to manage your savings, including mobile-app only accounts, online accounts and accounts that you can open and manage in a branch.

Alternatives to an easy access savings account

Instead of an easy access savings account, there are other types of accounts that may be worth considering.

• Fixed rate bonds: If you have a lump sum to put into savings and you know you won’t need access to your money, a fixed rate bond may be a suitable option. In return for locking away your money, these accounts usually pay a higher rate of interest that’s guaranteed for the specified period.
• Notice accounts: These are similar to easy access accounts in many ways, except you need to wait an agreed number of days before you can withdraw money from the accounts.
• Regular savings accounts: You may be able to get a higher rate with these accounts, but you need to deposit a set amount each month and may not be able to make any withdrawals.
• Individual savings accounts (ISAs): If you’re concerned about paying tax on your savings, you may want to consider an easy access cash ISA (or another type of ISA) that allows you to deposit up to £20,000 a year tax-free.