Are you looking for a savings account that's both easy to use and offers a decent return on your investment? If so, an easy access savings account might be your option. And did you know the best instant access savings account allows you to create a new account for just £1?
Continue reading to understand an easy access savings account and why it might be an excellent choice for your savings needs.
You can quickly and easily withdraw money from an easy access savings account. The money you deposit will earn interest, and you can withdraw your funds whenever you decide.
This particular type of account is an excellent option for saving towards emergencies. You have quick access to your money and can quickly get your hands on your savings in a crisis, such as an accident, medical emergency or if your car breaks down.
However, it's pivotal to remember that not all easy access savings accounts provide immediate access. There can be a little wait before you can withdraw money, and your access might be limited. So before opening the best savings account in the UK, consider the terms and conditions.
Interest rates for easy access accounts vary. As a result, your account's rate may increase or decrease at any time. In addition, you will receive different interest rates depending on your savings account type and the Bank of England base rate. Although you might have the option, interest on easy access accounts is usually paid annually rather than monthly. This can be helpful for individuals wanting to supplement their income instead of trying to increase their savings.
A few easy access savings accounts provide a bonus rate to entice new savers. However, this might only last for a limited time; once the bonus period ends, you might discover that the rate falls below that of rival banks or building societies.
Therefore, pay attention to the interest you're receiving. And transferring your money to an account with a better rate can be beneficial if the current rate is no longer competitive.
Easy access accounts may be a flexible and practical option if you want to start saving but still need access to your funds for unexpected expenditures.
But if you wish to save money for a long time and don't mind locking it away, you can profit from a higher interest rate. Cash ISAs and fixed-rate savings accounts are some other saving options.
You can also opt for a regular saver account. Many institutions provide these and offer higher interest rates than easy access savings accounts. However, you are usually only permitted to save up to £200 to £300 monthly for a year. Do your research and find the best regular savings account for you.
Although it bears more risk than a savings account or a cash ISA, you might also invest in stocks and shares ISA. However, you can receive a smaller return than you invested because your investment's value could increase and decrease.
Check out some of the best easy access savings accounts HERE.
There are several reasons why an easy access savings account might be the best bank account for savings. Here are just a few:
Flexibility - With an easy access account, you can deposit and withdraw funds whenever you need, without being tied into a fixed term.
Convenience - These accounts are typically easy to manage online, and you can easily access your money.
Security - Savings accounts are generally considered a safe and secure way to save money.
Decent returns - While the interest rates on easy access accounts are lower than other savings accounts, they still provide a decent ROI.
Tax-free interest - Depending on your tax band, you don't need to pay tax on the first £500 to £1,000 interest received because you have a personal savings allowance limit. That implies that saving is entirely tax-free for many people.
Ready for emergencies - An emergency fund can be a safety net by preventing you from using pricey credit or paying charges. Experts suggest saving three months' worth of necessary expenses in an instant-access savings account. Or even if you wanted money for traveling then you can access it whenever you want.
FSCS assured - If you open an easy access savings account at any UK-authorised bank or building society, the Financial Services Compensation Scheme, the UK's deposit and compensation guarantee scheme, will compensate you up to £85,000 for sole accounts and £170,000 for joint accounts.
Before you choose the best easy access savings account in the UK, there are a few points you should consider:
Interest Rates - Different banks and building societies offer different interest rates on their easy access accounts, so comparing rates is crucial to find the best deal.
Fees - Some banks may charge fees for managing your account, so check the terms and conditions before you sign up.
Access - Make sure you choose an account allowing you to access your money when needed. Some accounts may have withdrawal restrictions, so carefully check the terms and conditions.
Minimum deposit - Some banks may require you to make a minimum deposit when you create an easy access account, so make sure you can meet this requirement.
Financial stability - Choose a bank or building society that is financially stable and reputable.
Regular savings accounts have a monthly minimum deposit requirement, making them the best choice for new savers. However, these accounts usually have a one-year lifespan and limit how much money you can deposit.
Easy-access savings accounts allow you to quickly and conveniently withdraw your money, just as they claim to do. To make it easier to access your "emergency savings" in a time of need, keep them in an easy access savings account. These can also be accessed if you need to send money abroad.
An easy access savings account is an excellent option if you're looking for a practical and convenient way to save money. With no withdrawal penalties, these accounts offer great freedom and security. When choosing the best savings account, consider the interest rates, fees, access, minimum deposit, and financial stability of the bank or building society. With so many fantastic options, you will find an easy access savings account that meets your needs.
We have made every effort to ensure that the information published here is correct and accurate, however you should check and confirm the latest exchange rates with The Currency Club directly prior to making a decision. The information published is general and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available
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