Best Easy Access Savings Accounts

Easy access savings accounts explained

Easy access savings accounts, also known as instant access savings accounts, are amongst the simplest of savings accounts. They are designed to be a place to save your money with minimal withdrawal restrictions. Sometimes they may come with a bonus interest payment if you meet certain conditions.

Easy access accounts allow you to make additions and withdrawals without having to give advance notice to your savings provider or wait for a fixed period of time, which makes them a highly flexible form of saving. However, this doesn’t necessarily mean that all accounts allow unrestricted access. Indeed, some will limit the number of withdrawals you can make in a year, while others will impose an interest penalty or reduce the interest rate if you exceed a certain number of withdrawals, so it’s always wise to look closely at the terms and conditions of an account before making your choice.

If you’d prefer wholly flexible access, you can refine your search to exclude accounts with restrictions such as these (though the results will still include accounts where the only restriction is that withdrawals must be made through a particular account, often called a nominated account, that has been agreed with the provider).

Variable rates are more likely with easy access accounts

The vast majority of easy access accounts have variable rates, which means the interest rate you are offered at the start can change over time. You'll notice that the interest rates on easy access savings accounts tend to be lower than on notice accounts as well as fixed accounts such as fixed rate bonds and fixed rate ISAs.

Easy access savings accounts are ideal for those who aren't sure if they will be able to resist accessing their savings, as well as those who want to be able to access their money in the case of an emergency; for example, if their washing machine needs repairing or their car breaks down. They can also be perfect if you want to start a savings habit, but aren't sure if you can fully commit.

No other account type offers the freedom that easy access gives you, and a lot of accounts will come with low investment minimums, which means you could in some cases just put in a single pound to start saving. Of course, the more you manage to put away, the more you'll be able to earn in interest, but there's no pressure to keep saving after your initial deposit.

When you get an easy access account with a bonus, however, the bonus amount is almost always fixed for a certain amount of time, usually a year. So, you won't have to worry about the bonus element of the interest rate falling below this level for the allotted time, which can offer peace of mind if you’re concerned about the variable part of the interest rate falling in the near future. They tend to offer comparable headline rates to bonus-free accounts, and have similar minimum investment limits and management options, so aside from the additional security of the guaranteed bonus, there’s little to differentiate them.

The downside of accounts that come with a bonus is that such deals are time-sensitive. The bonus will be deducted from the headline interest rate after the fixed period ends, so your rate of interest will reduce by a potentially quite substantial amount. That’s why anyone considering an easy access account with a bonus should review their rate when the bonus expires and see if they can switch to a better deal – though the variable nature of easy access accounts means savers would be wise to review their rate on a regular basis anyway.

Many easy access savings accounts pay out interest only once a year, either on a set date or on the anniversary of the account opening. Other  accounts give you the option to get interest added to your savings (or paid away into your current account) every month. Learn more about monthly interest accounts.

However, you may have noticed that for some accounts, there's a difference between the AER and the gross interest rate on offer. The AER, or annual equivalent rate, looks at more factors than the gross rate does. The AER assumes that you're going to keep your money in the account for a year and benefit from compound interest (the interest you receive on the extra funds you accumulate via interest in the meantime).

There are many alternatives to easy access savings accounts. You could potentially get a higher interest rate while still retaining unlimited access with a high interest current account. The only downsides to these accounts are that they will usually require a certain amount of regular income and activity (such as multiple direct debits and regular monthly funding requirements), and only pay interest up to a certain balance, so if you want to get interest on more than £2,000-3,000 you could still be better off with a savings account.

The same low investment restriction applies to regular savings accounts. These tend to offer higher interest rates, but you'll only be able to put away maybe £50 to £500 per month. Additionally, most regular savers usually only allow you to access your funds again after a year, so they're not suitable for emergency pots.

Now that you have a clearer idea of what easy access accounts are, you may want to know how to choose between the top deals. Doing an easy access savings accounts comparison can be as easy or comprehensive as you want it to be.

For instance, you may only have £1 to invest at the start, in which case it's likely that not all the top rates will be available to you. On the other hand, if you've got a large amount that you want to retain access to, you could just go for the number one account in the charts.

There will be a few other things that people look out for when deciding, such as:

Branch-based or online-only?

Our search results make it easy to see which deals can be opened in branch. Then it's just a matter of seeing if the rate is up to your standards, the minimum investment limit is something you can live with and you can manage the account in branch as well. Of course, if you’re comfortable online banking, you can usually take your pick of the deals, as the best online easy access savings rate is often the best overall.

Best easy access savings accounts for over 50s

While there are still specific accounts for those who are over 50 or even 60, there are not as many as there may once have been and they tend not to pay the exclusive rates that they once did. If you desperately want one of these accounts, your best bet would be to contact your local banks or building societies. Otherwise, you may want to consider a traditional savings account, as they are likely to rival the rates of exclusive accounts and are simple to compare.

Fixed rate easy access savings accounts

The overwhelming majority of easy access deals, including the very best easy access savings accounts, will have variable rates. There are, however, rare occasions when a fixed rate easy access deal gets released. These products may be in the guise of fixed bonds with flexible access options, and will usually be very limited and only available for a year, after which the funds may be transferred to a variable rate easy access saver.

Because they are so rare, you may think that they will be wildly appealing, but the rates on these accounts won't necessarily be market-leading. So, if you're looking to open an easy access account, don't wait around for the white whale of a fixed rate deal, as you may never find it. If you'd prefer the security of a fixed rate, you might want to consider a fixed bond instead - provided you're happy to restrict your access.

Considering all these different criteria, it's easy to see that there is not one single best easy access account. You will have to compare easy access savings accounts to find the one that best suits you. Thankfully, our search results are a great place to start, so it hopefully won't be too difficult to find what you're looking for.