If you want a bank account where you can get hold of your money easily but want to get a decent amount of interest on it, then this is when an easy access savings account can help you. The accounts should give more back in interest than a current account or instant access account, but will still let you have some access to your money.
At these times when the economy is not good and many of us are concerned about having enough money to keep us going from month to month, we tend to worry about making sure we have some money just in case. This means that many people are not keen to tie their money up for very long. They are worried that they may need the money and not be able to get hold of it.
Having instant access means that you will be able to get your money whenever you need it and this is how current accounts and some savings accounts are set up. However, if you have an account like this, you will get very little money. An easy access account, means that you will be able to make some withdrawals from the account but they will be limited. This may mean that you have a certain number you can make then after that you will have a reduction in interest.
ISA’s could also be put in to this category, where although you can take out money, in many cases, you may be limited on how much you can pay back in because you have a limit to how much you can pay in to this type of account each year.
Having easy access to money can be really good. It can mean that you will have something available if you need emergency money or if you want to spend extra. You will also have the peace of mind knowing that you have money there just in case you need it. They usually pay more interest than instant access accounts and with rates being so low at the moment this can actually make quite a big difference. Many current accounts no longer pay interest and instant access current accounts often pay less than a percent, which does not add up to very much at all. You should be able to find easy access savings accounts that pay a bit more than that.
It is therefore worth considering setting up an easy access savings account to see whether you can get a better return on your savings. You may find that you can get a considerably better return on the money that you invest, than you can get in other types of accounts with the advantage of still being able to get it out if you need it.