Is an Easy Access account for you?

“What’s the current savings rate you’re on” might be a question you’re asked now more than ever. That’s because there is now a spotlight on savings rates since the Bank of England have pushed the base rate up to a 15 year high*.

As you may be aware, this rate has a direct effect on the interest rates that are offered by Savings providers.

While a constant rate rise is good news for savers, you may also be finding that choosing the right account to suit your needs is challenging.

In this article we’ll explore the reasons why an Easy Access account could be the right choice for you.

What’s the benefits?

An Easy Access account gives you exactly that; access to your funds when you need it.

In the current climate this can be important if you have unexpected expenses or you think you may need to dip into your savings to cover general monthly costs.

The interest rate is also variable. This means it can change regular and will normally follow the Bank of England base rate changes, although this is down to your individual Savings provider when a rate change is passed on.

However, you do have the benefit of shopping around to make sure you have the best rate available to you.

With an Easy Access account you can close your account at any time, you don’t need to give any notice or pay any penalties.

A lot of Savings providers will also offer monthly interest, which can help pay any monthly bills you may have, or can simply supplement your monthly earnings.

You also have the benefit of adding to your savings at any time. So if you find yourself in the fortunate position of having a surplus amount of funds, then it’s no problem to add this amount to your account at any time.

You can even set up monthly standing orders to keep your savings topped up.

What to be aware of

What goes up can come down. We’ve had the benefit of having back-to-back Bank of England base rate rises, but this may not always be the case.

Economic changes can mean that interest rates may start to reduce. This is something to be aware of and keep track of.

Your Savings provider has to notify you if your rate goes down and so you will have the opportunity to shop around should you choose to do so.

It’s also worth noting that, in exchange for being able to access your savings whenever you like, it is usually balanced by a slightly lower interest rate than what is typically offered by Fixed Rate accounts.

So what should I do?

Ultimately this really depends on what suits your savings needs and what’s best for your financial goals.

The good news is there is plenty of competition for your savings out there, so you have the ability to shop for the best account for you.

Make sure you check websites that will let you compare the interest rates on offer.

Charter Savings Bank currently offer an Easy Access account that may be of interest. You can view our current rates here.

*Correct as at 22 June 2023