If you’re looking for the best savings accounts for your cash but want the flexibility to take your cash out when you need it, then easy access accounts are looking good, with the average rate now 3.07%.
MoneyWeek has been tracking savings rates for some time now, and this week has seen a number of banks boost the rates on their easy access offering.
The top rate is currently via Cynergy Bank, offering the top rate of 5% - but a string of banks have also today (15 September) upped their rates.
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Sarah Coles, head of personal finance, at Hargreaves Lansdown says, the rise in rates is down to “a combination of raising Bank of England rates, pressure from the regulator, and growing competition - and it may well go higher.”
Research from Hargreaves Lansdown shows that despite rates on easy access accounts going up, the household is still holding on to an average £8,267 in cash accounts paying little interest. By not moving their cash to an easy access account, they could be missing out on hundreds of pounds in interest.
“When we choose where to keep our savings, the top consideration is how easy it is to get access to our money. However, we don’t need to lock it away in order to make our money work harder,” Coles adds.
If you have an idle account and are looking to move your cash, then these are the banks that have increased their rates and are paying some of the best rates right now.
Which banks have increased rates on easy access savings?
These are the banks that have boosted the rate on easy access accounts.
| Provider | Old rate AER | New rate AER | Minimum deposit |
|---|---|---|---|
| Cynergy Bank Online Easy Access Account | 4.8% | 5% | £1 |
| Secure Trust Bank Easy Access Account | 4.8% | 4.98% | £1,000 |
| Monument Bank Easy Access Account | 4.94% | 4.97% | £25,000 |
| Ford Money Flexible Saver | 4.75% | 4.95% | £1 |
| Shawbrook Easy Access Account | 4.93% | 4.95% | £1,000 |
Why should you move your cash to get a better savings rate?
With over £270 billion sitting in accounts making no interest at all, according to Bank of England data, savers are missing out on a collective £13.6 billion.
While many people may have savings inertia some people may also be holding onto cash as they may be looking to spend it soon. The good news is with easy access savings, you have the freedom to access your cash with ease without facing penalties over interest payments or give notice to withdraw your money.
And while banks have been slow in passing on rates, there are rates now worth considering for short term cash holdings.
“We’re throwing away more than £400 a year because we’re so keen to have cash at our fingertips," Coles added.
"The average household has £8,267 sitting in current accounts, and while we need some of this for essential spending, there’s every chance we’re keeping too much to hand, and managing our cash better could net us hundreds of pounds in interest every year.”
If you have savings of £5,000, you would bag £250 in interest via Cynergy Bank’s 5% account.
Why you need to act fast to get the best rates
If you are looking to bag a top rate, you may need to act fast as some of the top rates do not stick around for long as providers tend to drop the deals when they reach capacity.
This week, high street giant Santander pulled the rate on its 5.2% easy access account a week early due to high demand having only been on the market for just days.
Where else can I save for better rates?
While easy access accounts give you flexibility, if you do not need access to your savings for at least 12 months, you could get a high rate by putting your cash into a one-year fixed savings account instead.
Currently, you can get 6.2% with NS&I - which is the best available rate for that type of account right now, with a minimum deposit of £500.
But, you may be able to beat the NS&I rate with Ahli United Bank UK’s 1 Year Fixed Savings Account (via Raisin)*, where you can earn 6.1% plus £25 cashback when you use our link.
To get the cashback, you must be new to Raisin, deposit at least £10,000 and open an account by 28 September and use the code ‘OFFER25’ when registering. The account must stay funded by 31 October and remain funded for at least six months.
We crunched the numbers to see who could be better off with the Raisin deal - see How to beat NS&I's market-leading 6.2% savings bond.
*Affiliate link: When you sign up via this link, we may earn an affiliate commission from this deal.
Will interest rates go up further?
The Bank of England will announce its next interest rate decision next week (21 September). The expectations are that it may well hike the base rate again.
While banks do not always pass on rate increases to savers as fast as they do to borrowers, we can expect savings rates to get another boost in coming weeks - but with easy access accounts, it is easy to move your money should a better rate become available.
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