Find our best instant access savings accounts

Easy access cash ISAs are just like easy access savings accounts, but all the interest you make is free from income tax. This tax break is less attractive to many since the introduction of the personal savings allowance, which means basic rate taxpayers can earn up to £1,000 in interest a year without paying tax and should generally should only consider an easy access ISA if it’s offering a better rate than a traditional savings account. However, higher rate payers only get a £500 savings interest allowance, while additional rate payers don’t get any allowance at all.

Learn more about cash ISAs

A high interest current account could be a good alternative to an easy access account as there are some accounts on the market offering very competitive interest rates. If you have money sitting in a current account with 0% interest and you are able to follow the terms and conditions to have an account with a higher rate of interest, then this is also an option worth exploring. 

Learn more about current accounts

If you know you won’t need your money for a while, you may want to consider a fixed-rate savings account. These lock your money away for a set period, typically between one and five years. In return, you benefit from a higher interest rate than you can get with an instant access account. However, if you need to access your cash early, you’ll usually face interest penalties and/or exit fees.

Learn more about fixed rate bonds

With a regular savings account, you promise to save a certain amount of cash, say between £25 and £250, every month for the next year. Making this commitment generally allows you to access better interest rates than with an easy access saver and is also a good way to get into a regular saving habit. Withdrawals are usually not allowed. However, some accounts will let you make one cash withdrawal per year, so check for this if you think you might need to access your savings.

These accounts allow you to make withdrawals but only after giving notice. The amount of notice you have to give will be pre-agreed and could be anything from seven to 180 days. So think carefully about whether you might need your money in an emergency, and how quickly you might need to access it if so. The longer the money is locked away, the better the interest rate you’re likely to receive.

Learn more about notice accounts

One problem with savings accounts is that they typically pay less than inflation, which means the purchasing power of your savings is eroded over time. So, if you’re saving for the long term (more than five years), you might want to consider investing your money. A well-diversified portfolio can generate returns that beat inflation over time. However, there are risks, and volatility means that your money will fluctuate, and you could even end up with less than you saved. If you are going to invest, consider a stocks and shares ISA so the returns are tax-free. 

Learn more about stocks and shares ISAs

Yes, but you need to shop around. While most instant access savings accounts only offer interest paid out annually, some pay out monthly interest instead.

Usually as much as you want, but some accounts restrict how much you can save. This guide explains how to manage each type of account.

Not always, so make sure you check before you open the account.

Most banks are backed by the Financial Services Compensation Scheme (FSCS) which protects your money up to £85,000 in a single institution.

Currently, our best interest rate for an easy access account is 5.16%.

Some instant access accounts come with an introductory bonus that lasts for a set period. Choosing an account with a bonus can therefore increase your interest payments in the short term. However, when the bonus period ends, you will probably have to switch to another account to keep earning one of the best instant access savings account rates.

The Annual Equivalent Rate (AER) tells you how much interest you would receive if you left your money in a particular savings account for a full year, taking into account compound interest.

The Financial Conduct Authority (FCA) regulates the financial services industry to ensure firms stick to the rules and consumers do not fall victim to scams or get tied into unfair contracts.

This term is used to describe savings accounts that deliver a set interest rate over a given term. The interest rate and how long it lasts are agreed when you sign-up for the account.

The FSCS is a government-backed program that protects your money and compensates you if your bank, building society, or savings provider goes bust.

It covers up to £85,000 - or £170,000 for joint accounts - held in each official UK financial institution. It also provides cover for other sorts of financial products such as debt management, funeral plans, insurance, credit unions, investments, mortgages and pensions. 

There are several banking groups in the UK, but if you have a total of £85,000 or less with any of them, all your money will be returned to you in the event of each bank or building society in the group collapsing. Other types of institutions have different limits. You can check them all on the FSCS website.

This is the interest paid on a savings account before income tax deductions.

When your account reaches maturity, it means that the fixed term has come to an end. For example, if you have a 5-year fixed rate bond, your account matures on the day the 5-year fixed term ends.

A variable rate of interest on your savings account means that it may go up or down during the term of your account. Often, the changes will be pegged to a financial indicator such as the Bank of England base rate.