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Easy access accounts are straightforward savings accounts that let you deposit funds whenever you are able to, and withdraw them again when required (in most cases without penalty). For this reason, they can be an ideal place to stash rainy day funds that can be used as part of an emergency fund, that can be used for things such as a boiler breakdown or urgent car repairs. Many easy access accounts only require a small deposit to open them, so you won’t necessarily need a large lump sum to get started.
However, there are a few downsides. For a start, even the top-paying easy access savings accounts struggle to beat inflation these days, so don’t expect interest rates that will make your mouth water. Some accounts also come with a bonus rate that temporarily increases the rate you earn for around 12 months and after that time, the interest rate drops. It’s at this point you should start shopping around for a better account to switch to.
Also be aware that some easy access savings accounts will limit the number of penalty-free withdrawals you can make each year so always check the small print before you apply.
What's the difference between instant access and easy access?
Instant access and easy access accounts tend to have fewer restrictions than some other savings accounts. These types of accounts typically allow withdrawals instantly or within 1 day, and have no penalties attached to withdrawing.
For an account to be easy access rather than instant access, it means there may be a short wait when you want to take money out and there can be limits on the number of withdrawals you can make.
In our easy and instant access tables, we show products that are variable rate or cash ISAs, that allow instant withdrawals or withdrawals within 24 hours, and that have no penalties attached to withdrawals. However, for some products, there may be a limit to the number of withdrawals you can make in a specified amount.
How do easy access savings accounts work?
Here’s a quick snapshot of how easy access accounts work:
Application. You can usually apply online by providing your personal details and going through an ID check. If you already have an account with the financial institution you’re considering, you may be able to apply from the app.
Deposits. You can normally deposit as much as you like, whenever you like. If you’d like to save a fixed sum every month, you can set up a standing order from your current account, and your bank will move the money automatically for you.
Interest. It can be paid monthly or annually.
Withdrawals. By definition, an easy access savings account should allow you to transfer the money back to your current account anytime and then use it as you like.
End of a deal. Unlike fixed-rate bonds, easy access savings accounts don’t mature or expire. However, they might offer introductory interest rates that expire after a set period of time (like a year). If that’s the case, put an alarm on your phone calendar or make a note in your diary so that you don’t forget to compare easy access accounts again and potentially open one with another institution.
Should I get an easy access savings account?
Easy access savings accounts can be ideal if you’re looking to build an emergency savings cushion thanks to their ease of opening and flexibility. However, they don’t pay the best rates of interest, so if you’re looking to make more of a long-term commitment, a fixed-rate bond may be more suitable.
Fixed-rate bonds typically pay higher interest rates but require you to lock away your funds for a period of between 6 months and 5 years. The longer you can commit, the higher the interest rate will be. Note that most won’t allow you to add to your savings during the term of the bond so they are best suited to those with a lump sum to invest.
If you’re happy to take on more risk and potentially gain a greater return on your savings, you could also consider investing. However, remember that your capital is at risk and you may get back less than you invested.
Is an easy access savings account right for me?
To summarise, an easy access savings account can be a good choice in the following situations:
The idea of investing your savings fills you with dread. Investing can be risky, complicated and time-consuming.
You think you may need your savings at some point in the near future. If you’re 100% sure you won’t, have a look at fixed-rate bonds instead as they normally pay better rates.
You’d rather keep your savings separate from your day-to-day finances. In general, having a dedicated account for your savings takes away some of the temptation to spend them.
Your current account doesn’t pay an interest rate (or you’ve reached the maximum limit). Some current accounts (although not many) pay interest on balances up to a certain figure, which in some cases may be better than those offered by easy access savings accounts. It’s worth considering this option, but if your current account doesn’t pay any interest and you don’t want to switch, or if it only pays interest for the first few thousand pounds (that’s usually the case) and you’ve already reached the limit, an easy access savings account is definitely the next option to look at.
How to compare easy access savings accounts
Unlike most financial products, easy access savings accounts are not complicated to compare. Take a look at the steps below:
Look at the interest rate. Guess what? You’ll want the one that pays the highest rate.
Check the eligibility criteria. Some banks only offer savings accounts to existing customers. Moreover, while some easy access savings accounts can be opened with as little as £1, others require a more conspicuous minimum deposit, so they’re not suitable for savers who are just starting their journey.
Make sure withdrawals aren’t limited (or that you’re okay with it if they are). Some easy access savings accounts aren’t fully easy access, but will limit the number of times you can withdraw money from the account every year. Make sure you’re aware of it if that’s the case.
Are easy access savings accounts safe?
Yes, just double-check that the deal you’re looking at is FSCS-protected (all the savings accounts with major financial institutions will be). The Financial Services Compensation Scheme protects your deposits up to £85,000 and would refund you if something were to happen to your savings account provider.
If you have more than £85,000, it’s better to spread your savings between different accounts to secure full protection.
Pros and cons of easy access savings accounts
Pros
You can top up and access your funds whenever required.
Many accounts can be opened with as little as £1.
Straightforward application process.
Cons
Interest rates are typically lower compared to fixed-rate bonds.
Some easy access accounts include a bonus rate for around 12 months. After this point, the interest rate usually drops dramatically.
Interest rates are usually variable so can change at any point.
Bottom line
If you’re just starting to save or you are looking to build up a cash cushion to fall back on in an emergency, an easy access savings account can be a great place to start. Just remember to seek out the best interest rate and make a note of when any bonus rate expires so that you’re ready to switch to a more competitive account when the time comes.
They offer a variable interest rate. This means that the interest rate can change over time, for example if the Bank of England changes its base rate.
Depending on your income, you have a tax-free allowance on interest. It’s called “personal savings allowance” (PSA). It’s £1,000 a year for basic 20% rate taxpayers and £500 a year for higher 40% rate taxpayers. Top 45% rate taxpayers don’t have one, so they have to pay taxes on all the interest they earn. Cash ISAs don’t count towards the allowance.
You can have as many as you like. Some financial institutions only allow a limited number of them, but you can always open more with another bank.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio
Matthew's expertise
Matthew has written 244 Finder guides across topics including:
Helping first-time buyers apply for a mortgage
Comparing bank accounts and highlighting useful features
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