Choosing an easy access savings account

Deciding whether or not an easy access savings account is right for you is down to your personal preferences and financial goals.

Keeping your money safe and earning interest is never a bad decision, but your choice of savings account is likely to boil down to the restrictions and ease of use, as well as whether you’re able to lock your money away for a certain period or not.

As you can see from the chart below, instant access savings accounts are the most popular type of savings account in the UK:

The best way to decide whether an easy access account is right for you or not is to compare different savings accounts.

If you need flexibility, simplicity and easy management from your savings account, easy access accounts might be the best flexible savings account for you. This is especially true if you want to start an emergency fund to cover the cost of unexpected financial emergencies like car repairs or vet bills. Putting some of your money into an instant access savings account means you’ll be able to withdraw your cash should the need arise, potentially avoiding the need to rely on your overdraft or expensive credit cards.

Just make sure you check the small print of each account you’re considering opening as even some easy access accounts come with certain restrictions. For example, some providers limit how often you can withdraw your cash in return for a better interest rate. Others require a minimum deposit amount or impose penalties for breaking restrictions. There are, however, plenty of easy access savings accounts that don’t impose restrictions, although bear in mind that the interest rate may be lower on these types of accounts.

You might also want to consider whether an easy access account suits your savings goals or if a different type of savings account could be better for you. Notice accounts, for example, usually offer more competitive variable rates of interest but require a lump sum deposit to open, and you need to give up to 90 days’ notice when you wish to make a withdrawal. After you make a withdrawal from a notice account, your account closes, meaning that notice accounts are better suited to people who want to save for a specific purchase.

If you have a lump sum to deposit and can lock your money away for up to five years, fixed rate bonds typically offer competitive fixed interest rates, so you’ll know how much interest you’ll earn and your money will be available after a fixed term.

And of course, you’re not just tied to one particular savings account – in fact, it’s usually a good idea to open multiple savings accounts to suit your different financial goals. For example, you might want to put a portion of your money into an easy access savings account to cover financial emergencies, and lock away any remaining spare cash in a high-interest fixed rate bond.

It’s quick, easy and free to open any of these types of savings accounts at raisin.co.uk. Simply visit the comparison table at the top of this page to get started.

The best way to find the right easy access savings account for you is to do the following:

• Know what account features are your priority (e.g. the interest rate, any perks or rewards the account comes with or how often you can make withdrawals)
• Do your research
• Don’t forget to read the small print

Generally speaking, the best easy access savings account will be the one that offers the highest interest rate and has terms that work for you. For example, if you’re new to saving and you don’t have a lump sum to deposit, you’ll want to look for an account with a low opening deposit (many easy access savings accounts can be opened with as little as £1).

If freedom and flexibility are your top priorities, the best easy access savings account for you will be the one that pays a competitive interest rate and doesn’t restrict the number of withdrawals you can make. However, if you’re not worried about limiting access to your cash, the best easy access savings accounts will typically be those that pay the highest interest rates.

How much you have in your easy access savings account is entirely your choice, but most financial experts recommend having enough money set aside to cover your expenses for three to six months in case of any unexpected financial shocks or changes in circumstance. If you suddenly lose your job, for example, you’ll need enough money behind you to pay your bills while you look for alternative employment.

Of course, the exact amount you should have in an easy access savings account will depend on your individual circumstances and variables such as:

• Your total household expenses
• The number of people in your household and their contributions
• The income security of your household

With this in mind, you might want to create a budget plan to see what your monthly expenses look like. While experts recommend saving three to six months’ worth of outgoings, any amount you can put aside will always be better than nothing. Not only will it help to take the pressure off in times of financial crisis, but it will also mean you’re less likely to get into debt.

Having an idea of what you want to get out of your savings account will make it easier for you to compare easy access savings accounts to find the best savings account for you.

For example, you might want to compare interest rates so you know you’re getting the best rate over the longest term. It’s also worth checking if, and how often, interest is compounded as this can help to grow your savings faster.

If you’re looking for an easy access savings account that offers the most flexibility in terms of how much or how often you can make withdrawals, those are important details to look for.

There are plenty of free comparison tools online that let you compare easy access savings accounts from a variety of providers. You can also compare easy access savings accounts on the Raisin UK marketplace by simply visiting the table at the top of this page. Here you’ll find a great range of competitive easy access savings accounts from our partner banks, all of which are protected under the Financial Services Guarantee Scheme (or European equivalent).

If you want to quickly and easily open savings accounts with deposit protection, register for a Raisin UK Account. Opening a Raisin UK account and applying for savings accounts from our partner banks is free, and once you’ve been approved, all you need to do is make a deposit and watch your savings grow.

Contact our UK customer services team for more information or read our guide on how to open an easy access account.