High interest easy access savings accounts

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If you have savings in the bank, are they earning the best rate of interest? Find out about easy access savings accounts and which pay the most interest.

High interest easy access savings accounts

You can easily earn over 1% on easy access savings accounts. I’ve listed a few best buys from the Moneyfacts comparison site.

RCI Bank pays 1.3% on balances of £100 or more on its Freedom Savings Account. You can make as many withdrawals as you like and there’s no notice period or bonus. Interest rate is paid monthly or annually.

Account operated? You have to open it in online and you can operate it online, by phone or by post.

SAVVY TIP: RCI Bank is not covered by the UK savings compensation scheme, the FSCS. However, your savings are covered up to a limit of €100,000 by the French savings compensation scheme (called FGDR).

Ulster Bank pays 1.25% on its eSavings account on balances from £1.

Account operated? You have to set up internet and telephone banking to open the account and can manage it online, by mobile or by phone.

SAVVY TIP: Ulster Bank is covered by the UK savings compensation scheme, the FSCS. This means that your savings up to a limit of £85,000 (or £170,000 for a joint account) are protected.

BM Savings pays 1.25% on its Internet Saver account. It’s a 12 month account but you can get access to your money at any time and – somewhat confusingly – the interest rate is not fixed. The reason it’s a 12 month account is that after a year it switches to a Standard Saver internet account, which pays a much lower rate of interest (currently it’s paying a measly 0.05%)

Account operated? You can open and manage the account online.

SAVVY TIP: BM Savings is covered by the UK savings compensation scheme, the FSCS. This means that your savings up to a limit of £85,000 (or £170,000 for a joint account) are protected. However, as it’s part of Halifax, Bank of Scotland, any money you have in other accounts operated by them, such as Halifax and Bank of Scotland, are part of that limit.

Virgin Money: You can earn 1.21% on its Double Take e Saver. The double take bit means you can make two withdrawals in a calendar year without penalty.

Account operated? You have to open and operate the account online.

SAVVY TIP: Virgin Money is covered by the UK savings compensation scheme, the FSCS. This means that your savings up to a limit of £85,000 (or £170,000 for a joint account) are protected.

Easy access cash ISAs

As I write this, cash ISA rates are lower than easy access savings accounts. Here are some best buys, according to Moneyfacts. Although you can earn 1.3% with Chartered Savings Bank cash ISA if you don’t mind giving 95 days’ notice of any withdrawals.

Post Office Money: you can earn 1.07% with its online cash ISA on balances of £100 or more. Watch out because there’s a chunky 0.82% bonus for the first 12 months.

Account operated? You have to manage the account online.

SAVVY TIP: Post Office Money is covered by the UK savings compensation scheme, the FSCS. This means that your savings up to a limit of £85,000 (or £170,000 for a joint account) are protected. The cash ISA is provided by One Family.

The AA: you can earn 1.06% with its online cash ISA on balances of £100 or more. Be aware that there is a large 0.86% bonus for 12 months. After 12 months the interest rate will fall to 0.2%.

Account operated? You have to manage the account online.

SAVVY TIP: The AA is covered by the UK savings compensation scheme, the FSCS. This means that your savings up to a limit of £85,000 (or £170,000 for a joint account) are protected. The cash ISA is provided by One Family.

Sainsbury’s Bank: you can earn 1.06% in its Cash ISA if you have at least £500 in the account. You can have as little as £1 in the cash ISA, but you’ll only earn 0.5% on balances up to £500

Account operated? You have to manage the account online or over the phone.

SAVVY TIP: Sainsbury’s Bank is covered by the UK savings compensation scheme, the FSCS. This means that your savings up to a limit of £85,000 (or £170,000 for a joint account) are protected.

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