Top 10 easy access savings accounts with high interest rates now

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While there are currently no savings accounts that beat the UK’s staggering 10.5 percent inflation rate, banks and building societies are offering savers some of the highest returns seen in decades. However, interest rates have been changing month on month, making it vital people keep watch of the market to ensure they’re investing in the savings accounts offering the best rate.

Rachel Springall, a finance expert at Moneyfacts explained while inflation continues to “degrade the true spending power of savers’ cash”, as not one standard savings account can beat it, it “should not deter” savers from seeking out a new savings deal.

She said: “Consumers’ attitudes to saving in 2023 will depend on their immediate needs and desired goals, but for many, flexibility with their money could be essential to help them keep on top of the cost of living.

“Those savers comparing easy access accounts or ISA equivalents would be wise to check if any terms meet their needs, as some accounts will restrict withdrawals and lead to a rate drop or closure of the account when any limit is breached. Comparing any existing account against the latest deals out there is essential and signing up for newsletters and rate alerts will help them save some time and keep them in the know.”

While there are many different savings accounts on offer, from cash ISAs to fixed rate bonds, easy access accounts are one of the most simple to manage.

These accounts typically allow savers to make payments and withdrawals with minimal restrictions and with small opening deposit requirements – and some after offering rates as high as 3.35 percent.

However, some accounts are offering higher rates than others. Moneyfacts has pulled together the top 10 available right now.

Top 10 easy access savings accounts

Ranking top of the list is Yorkshire Building Society’s Rainy Day Account (Issue 2) with an Annual Equivalent Rate (AER) of 3.35 percent.

This account offers a competitive, two-tiered variable interest rate and savers can get started with as little as £1. The 3.35 percent rate is applied to balances up to £5,000, while a 2.85 percent rate is applied to balances over £5,000.01.

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Withdrawals are permitted on two days per year based on the anniversary of account opening, plus closure at any time.

HSBC’s Online Bonus Saver places second with an AER of three percent, calculated daily and applied to the balance monthly.

The three percent rate is awarded on up to £10,000 of the balance every month a withdrawal is not made, while 1.4 percent will apply to figures over £10,000.

While this is an easy access account, meaning savings can be withdrawn, it isn’t flexible and on the occasion that a withdrawal is made, a 0.65 percent standard rate will be applied to that month instead.

Monmouthshire Building Society’s Premium Instant Access account ranks third, also with an AER of three percent.

This account requires a minimum of £25,000 to open and interest is calculated daily and applied to the balance annually on March 31.

Free and unlimited withdrawals are permitted, however, if the account falls below the minimum balance of £25,000, a variable rate of 0.05 percent AER will be applied until the account returns to the minimum balance.

Placing fourth is Sainsbury’s Bank’s Defined Access Saver (Issue 37) with an AER of 2.87 percent.

The account can be opened with just £1 and interest is paid on the anniversary at a tiered rate depending on the balance. A 1.05 percent rate is applied to balances up to £999, while 2.87 percent is applied to figures between £1,000 and £500,000. A 0.9 percent rate is applied to any balance over this.

If more than three withdrawals are made in a 12-month period, the interest rate will reduce to 0.8 percent until the 12-month period has ended.

Zopa bank’s Smart Saver places fifth with an AER of 2.86 percent and offers slightly more flexibility to account holders.

There is no minimum deposit requirement and interest can be paid away or compounded, and savers can open an account using the Zopa app. Withdrawals are permitted without any penalties and up to £85,000 can be invested.

Ranking sixth is Coventry BS’ Limited Access Saver (Online) (7) with an AER of 2.85 percent.

This account can be opened with a minimum of £1 and up to £250,000 can be invested. Interest is calculated daily and paid annually on the anniversary of the date the account opened or monthly, at the end of the last day of each month.

However, being a limited access account, account holders are only allowed to withdraw money up to six times a year without having to pay a charge. From the seventh withdrawal onwards (which can include closure), a charge equivalent to 50 days’ interest will be applied based on the amount being withdrawn.

Paragon Bank’s Triple Access Account (Issue 11) places seventh with an AER of 2.85 percent.

The account can be opened with £1, interest is paid on the anniversary, and up to three withdrawals are permitted without facing a penalty. If four or more withdrawals take place, interest will drop to 0.75 percent until the day before the anniversary of the account holder’s opening deposit.

Al Rayan Bank’s Everyday Saver (Issue 3) places eighth with an AER of 2.81 percent.

A minimum of £5,000 must be deposited to open this account and interest is calculated and credited to the account on the last day of every month. People can make unlimited withdrawals free of charge, and up to £1million can be invested overall.

In ninth place is Monmouthshire BS’ Escalator Instant (Issue 3) with an AER of 2.8 percent.

The account requires a minimum deposit of £100 to open and interest is paid depending on the balance. A 2.4 percent rate is applied to funds up to £4,999, while a 2.6 percent rate is applied to a balance between £5,000 and £24,999. A balance of £25,000 and over will see the 2.8 percent rate.

One interest rate will apply to the entire balance, and it is calculated daily and paid annually after close of business on March 31 each year. Unlimited withdrawals without notice are permitted.

Finally, in tenth place is another Yorkshire Building Society account, this time its Internet Saver Plus (Issue 13) with an AER of 2.75 percent.

This account can be opened with £1 and interest is also paid at a tiered rate. A balance of up to £10,000 will receive the 2.75 percent rate, while a balance of up to £50,000 will receive a 2.85 percent interest rate. For a balance of over £50,000, a 2.9 percent rate will be applied.

Interest is calculated daily and paid annually on March 31. Unlimited instant withdrawals – subject to YBS’ daily withdrawal limits – are permitted, without loss of interest.

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