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Easy-access savings vs regular savings – where is your money better off?
Regular savings accounts often have high headline interest rates, but there are often limits on how much you can put into the accounts. Is your money better off in easy-access savings?
When choosing between different types of savings accounts, you’ll need to consider what the money is for and when you may need it, as well as how to maximise growth.
Most cash savings accounts will be one of three types: easy-access, regular, or fixed.
An easy-access account lets you put cash in or take it out of the account, typically with no penalties, while a fixed account locks your money away to grow at a set interest rate for an agreed-upon amount of time.
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A regular saver can be a good way for you to start and maintain a good savings habit, and they often boast some of the highest headline savings rates on the market.
However, they may not be suitable for everyone, like those with large lump sums to save. These savers may earn more interest in a fixed or easy-access savings account.
Jessica Sheldon, MoneyWeek’s deputy digital editor, said: “The higher savings rates offered on regular savings accounts can seem attractive but consider whether your money would earn more elsewhere, often with less restrictions.”
How does a regular savings account work?
A regular saver encourages you to put money into your savings every month, often with an interest rate that looks high on paper.
For instance, in October 2026, the best regular savings account paid an interest rate of 8%, while the top easy-access account paid 4.5%.
Unlike easy-access rates, regular savings rates tend to be fixed, giving you certainty on the interest you earn.
However, there are drawbacks. Most regular savers will have minimum and maximum monthly contributions you must make, and withdrawals tend to be restricted.
The higher rates of interest offered by regular savers are also not fully comparable with those from easy-access accounts because they are calculated differently.
Derek Sprawling, head of money at Paragon Bank’s Spring, explained: “Regular savers can be a useful way to build a savings habit, particularly for people putting money aside from their income each month. However, savers should not assume that the highest advertised rate will automatically give them the best return.
“Because money is paid into these accounts gradually, only part of the balance benefits from the headline rate for the full term. If someone already has money available to save, they may earn more by placing it into a competitive savings account straight away.”
How does an easy-access savings account work?
An easy-access savings account allows you to put in and take out money without penalties.
Many easy-access accounts will let you do this instantly, though there are some that can take up to one working day.
The interest rate in an easy-access account is usually variable, meaning your provider can change it at any time. Most often, this will happen when the Bank of England lowers or raises interest rates.
Easy-access savings accounts can be great places to save money for a rainy day or to keep your emergency savings fund as the interest you earn on your balance means it keeps growing – ideally faster than inflation.
This being said, you should still do your research before opening an easy-access account.
Many of the top savings rates include bonus rates that make the account attractive at first, but rates will often fall substantially once the bonus expires.
Others will have restrictions such as a limited number of withdrawals before your savings rate is lowered, or impose eligibility requirements.
Easy-access versus regular savings accounts
One of the most important things to understand when choosing between an easy-access and regular savings account is how the advertised interest rate applies to your savings.
An easy-access account’s advertised interest rate reflects how much your money will grow if you hold it there for a year, assuming the interest rate does not change during that time.
A regular saver’s advertised interest rate also reflects this, but because of the way money is deposited into the regular account, the interest rate is effectively lower than the headline rate.
The advertised rate will only apply to the first deposit you make into the account, and will be lower in real terms for each subsequent monthly deposit.
For example, if you paid £300 into a regular saver offering an 8% interest rate each month for a year, only the first month’s deposit will get the full 8% growth because it is the only one held for the full 12 months.
The second £300 saved will only earn that 8% for 11 months, the third £300 for just 10 months, and so on. If you deposit £300 in the final month, that portion will only earn 8% for one month.
The table below illustrates how each extra deposit earns less interest as you go through the year.
Swipe to scroll horizontally
Months saved
Monthly payment
Total balance saved
Interest this month's deposit will earn at advertised 8%
12
£300
£300
£24
11
£300
£600
£22
10
£300
£900
£20
9
£300
£1,200
£18
8
£300
£1,500
£16
7
£300
£1,800
£14
6
£300
£2,100
£12
5
£300
£2,400
£10
4
£300
£2,700
£8
3
£300
£3,000
£6
2
£300
£3,300
£4
1
£300
£3,600
£2
Row 13 - Cell 0
Row 13 - Cell 1
Row 13 - Cell 2
Total interest earned: £156
In this example, a total of £3,600 was put into a regular saver advertising an 8% interest rate through 12 monthly payments of £300.
The interest earned over the year was £156, the same as you would have earned if you put the money into an easy-access account as a lump sum with an interest rate of roughly 4.33%.
On the other hand, if you had put the £3,600 as a lump sum into the top easy-access account paying 4.5% interest, you would have earned £162 of interest over the full year, outperforming the regular saver.
Is my money better off in an easy-access savings account or regular savings?
Whether your money is better off in an easy-access or regular savings account depends on your personal circumstances.
If you already have a lump sum, putting it into a top savings account instead of a regular saver will likely deliver stronger growth.
However, if you do not have a lump sum and intend to save monthly, which account you should choose comes down to the rate available and whether you need to access the money soon.
The example above shows the top easy-access saver grows your money more than the top regular saver if you have the lump sum available, but there is no guarantee that the easy-access account’s rate will stay the same throughout the year as it is variable.
On the other hand, most regular savings accounts offer a fixed rate for 12 months, which gives you certainty on what you will earn.
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Daniel is a financial journalist at MoneyWeek, writing about personal finance, economics, property, politics, and investing.
He covers savings, political news and enjoys translating economic data into simple English, and explaining what it means for your wallet.
Daniel joined MoneyWeek in January 2025 and previously worked at The Economist in their Audience team. He read history at Emmanuel College, Cambridge and edited Cambridge's student newspaper, Varsity.
In his free time, he likes reading, walking around Hampstead Heath, and cooking overambitious meals.
