Derin Clark

Derin Clark

Online Reporter
Published: 26/06/2019

Which instant-access savings account pays the best rate?

There are three different providers offering the same top rate for easy access savings rates at the moment.

The current top rate in the easy access savings chart is 1.50% AER, which is being offered by Cynergy Bank, Marcus by Goldman Sachs® and Virgin Money.

Cynergy Bank is offering this rate on its Online Easy Access Account – Issue 23, which requires a minimum deposit of just £1 to open and a 0.50% bonus for 12 months is included in the rate. Once open, further additions and withdrawals, via a nominated account, are allowed. The account can only be opened and managed online.

Online Savings Account from Marcus by Goldman Sachs® has been dominating the easy access chart since it was launched last year. The rate includes a 0.15% bonus for 12 months and there is no minimum deposit needed to open this account. Interest is paid monthly at a gross rate of 1.49%, equating to 1.50% AER. To open this account a UK mobile number is needed, and once open further additions and withdrawals are allowed. It must be opened online but can then be managed by phone as well.

The two accounts from Virgin Money – Double Take E-Saver Issue 10 and Man Utd Double Take E-Saver Issue 5 – both pay 1.50% AER from a minimum opening deposit of just £1, however unlike the other accounts offering this rate, they do not include a bonus. In addition to this, while both accounts allow further additions, they restrict withdrawals to just two per calendar year, which includes closure. Both accounts can only be opened and managed online. They each offer a version that pays interest on a monthly basis at a slightly reduced gross rate of 1.49%, which equates to 1.50% AER. In addition to this, the Man Utd Double Take E-Saver Issue 5 includes 10 entries into the prize draw for every month the account is open and one extra entry for every £50 held in the account.

Account Rate

Cynergy Bank

Online Easy Access Account – Issue 23
1.50% AER

Marcus by Goldman Sachs®

Online Savings Account
1.50% AER

Virgin Money

Double Take E-Saver Issue 10
1.50% AER

Virgin Money

Man Utd Double Take E-Saver Issue 5
1.50% AER

What are the best instant access monthly interest accounts?

Savers looking to have the interest paid monthly from an easy access account should be aware that it is often paid at a slightly reduced gross rate than the AER.

Marcus by Goldman Sachs® and Virgin Money both offer the best rates on easy access accounts that pay interest monthly, offering 1.49% gross monthly which equates to 1.50% AER.

Marcus by Goldman Sachs offers this on its Online Savings Account, which does not require a minimum deposit to open and the rate includes a 0.15% bonus for 12 months. To open this account a UK mobile number is needed, and once open further additions can be made, as well as withdrawals. It can only be opened online, then managed online and by phone.

Two accounts from Virgin Money pay a rate of 1.49% gross monthly (1.50% AER). These are Double Take E-Saver Issue 10 and Man Utd Double Take E-Saver Issue 5. Both accounts require a minimum deposit of £1 to open. They allow unlimited further additions, but consumers should be aware that they restrict withdrawals to two per calendar year, which includes closure. The accounts can only be opened and managed online. For Manchester United fans, the Man Utd Double Take E-Saver Issue 5 also has the added benefit of including 10 entries into the prize draw for every month the account is open and one extra entry for every £50 held in the account.

Also offering a rate of 1.45% AER and 1.44% gross monthly is Post Office Money® with its Online Saver Issue 38 account, however it includes a 1.19% bonus for 12 months. This online-only account also needs just £1 to open and allows further additions and withdrawals.

Which instant access account pays the best rate with a bonus?

Some easy access savings accounts come with a bonus that usually lasts for an introductory period of 12 months. The inclusion of a bonus can result in an attractive headline rate, however it is important to note that the size of the bonus offered is not reflected in the advertised AER. This means that the account at the top of the chart offering the highest AER may not be offering the highest bonus rate as well. Savers should also be aware that they may need to review the account once the bonus expires, otherwise there is the risk of a significant reduction in the interest payable. As well as this, payment of a bonus does not guarantee that the account is the best available and better accounts without bonus may be on offer. 

Cynergy Bank offering a 1.50% AER on its Online Easy Access Account – Issue 23, which includes a 0.50% bonus rate for 12 months. This account requires a £1 minimum deposit to open and allows further additions and withdrawals, via a nominated account. It can only be opened and managed online.

Another account paying a rate of 1.50% AER is Online Savings Account by Marcus by Goldman Sachs®. This rate includes a 0.15% bonus for 12 months and does not require a minimum deposit to open, although those looking to open this account must have a UK mobile number. The account allows unlimited further additions and withdrawals. It must be opened online but can then be managed by phone too. 

AA offers a rate of 1.47% AER on its Easy Saver – Issue 10, which includes a 1.27% bonus for 12 months. This account requires a slightly higher opening deposit of a minimum of £100, but also allows unlimited further additions or withdrawals. This account can be both opened and managed online and by phone.

Online Saver Issue 38 by Post Office Money® pays 1.45% AER and also includes a 1.20% bonus for 12 months. The account can be opened with a minimum deposit of just £1 and allows further additions and withdrawals. It can only be opened and managed online.

Internet Saver by Tesco Bank offers 1.31% AER, which includes a bonus of 0.76% for 12 months. This account can be opened from just £1 and, again, allows unlimited further additions, however withdrawals are limited to a maximum of £10,000 to non-Tesco Bank accounts and £100,000 to Tesco Bank accounts. This account can only be opened online but then managed via its mobile app as well.

Which instant access account pays the best rate without a bonus?

Among the easy access savings accounts that don’t offer a bonus, Virgin Money offers the highest rate of 1.50% AER on two accounts. Double Take E-Saver Issue 10 and Man Utd Double Take E-Saver Issue 5 both offer this rate on a minimum deposit of just £1. The accounts allow further additions, but withdrawals are restricted to two withdrawals per year including closure. The accounts can only be opened and managed online. In addition to this, the Man Utd Double Take E-Saver comes with the additional incentive of 10 entries into the prize draw for every month the account is open and one extra entry for every £50 held in the account.

Offering a slightly reduced rate of 1.44% AER is Sainsbury’s Bank with its Defined Access Saver – Issue 12. This account works slightly differently to many other easy access savings accounts in that it offers different rates for different deposit amounts. The account can be opened with a minimum deposit of £1, which pays 0.75% AER. For a deposit of £1,000 it pays 1.44% AER, while deposits at £500,001 and over it pays 0.50% AER. The account allows unlimited further additions while withdrawals are also permitted, although a lower rate is paid if more than three withdrawals are made per year. The account can be both opened and managed online and by phone.

Shawbrook Bank is offering a rate of 1.43% AER on its Easy Access – Issue 14. This account requires a much larger minimum deposit of £1,000. It allows further additions and withdrawals (via a nominated account) and must be opened online but can then also be managed by phone.

What is the best rate for instant access savings online?

Good news for savers looking to open and manage their account online is that the best easy access savings rates are with online accounts, with the all three of the providers offering the top rate of 1.50% AER on online accounts.

Cynergy Bank offers this rate on its Online Easy Access Account – Issue 23, which requires a minimum deposit of £1 to get the 1.50% AER rate, which includes a 0.50% bonus for 12 months. An online-only account, once opened it allows further additions and withdrawals (via a nominated account).

Marcus by Goldman Sachs® offers 1.50% AER on its Online Savings Account, which can only be opened online and then managed online, as well as by phone. The account does not require a minimum opening deposit and includes a 12-month bonus of 0.15%. To open this account a UK mobile phone number is needed. Further additions and withdrawals are allowed.

Virgin Money has two accounts offering 1.50% AER, both of which are online-only accounts. Its Double Take E-Saver Issue 10 and Man Utd Double Take E-Saver Issue 5 both require a minimum deposit of £1 to open and allow further additions. Savers should be aware that these accounts restrict withdrawals to two per calendar year, including closure. Both accounts also have a version that pays interest monthly at a slightly reduced gross rate of 1.49%. The Man Utd Double Take E-Saver Issue 5 also offers the incentive of including 10 entries into a prize draw for every month the account is open and one extra entry for every £50 held in the account.

Another online-only account, Paragon Bank offers a rate of 1.45% AER on Limited Edition Easy Access (Issue 7). A minimum deposit of just £1 is needed to open this account, which allows unlimited further additions and withdrawals. There is also a version of this account that pays interest monthly at a slightly lower rate of 1.44%.

What are the best rates for postal accounts?

For those who want to open and manage their account by post, the best rate on offer is 1.30% AER. Three different providers offer this rate on accounts that can be opened and managed by post.

Kent Reliance offers 1.30% AER on its Easy Access – Issue 34, which can be opened and managed by post, as well as online and in branch. The account requires a high minimum opening deposit of £1,000. Once opened further additions and withdrawals are allowed. There is a version of this account that pays interest monthly at a slightly reduced gross rate of 1.29%.

Loughborough Building Society’s Future First can be opened and managed by post and in branch and offers a rate of 1.30% AER. This account requires a minimum deposit of just £1 to open and allows further additions, however withdrawals are restricted to four per calendar year.

Another account offering a 1.30% AER rate is Yorkshire Building Society on its Annual Access Account, which can be opened by post or in branch, then managed by post, in branch and online. This account requires a minimum opening deposit of £100 and while unlimited further additions are allowed, withdrawals are restricted to one per account year.

Market Tracker Saver (1) by The Family Building Society offers a rate of 1.25% AER and can be opened by post, in branch and online then managed all these ways, as well as by phone. A minimum opening deposit of £500 is needed to open this account and it allows unlimited further additions, however withdrawals are restricted to 20 per calendar year via a nominated account.

Which provider offers the best interest rates for instant access that can be opened in branch?

While the best easy access savings rates are available with online-only accounts, providers know that many consumers still prefer in branch access, and as such, competitive rates can still be found on accounts that allow in branch access.

Britannia, which is part of the Co-operative Bank, offers the best rate on an in-branch account with its Select Access Saver 10 offering 1.40% AER. This account can be opened in branch, online and by phone and then managed in branch, by phone and post. To open this account, a minimum deposit of £500 is needed. Once open, it allows further additions and withdrawals, although a lower rate is paid if more than four withdrawals are made per year.

A number of providers offer a rate of 1.30% AER and have in branch access including Kent Reliance, which offers this rate on its Easy Access – Issue 34. This account requires a higher minimum opening deposit of £1,000 and can be opened and managed in branch, online and by post. Once open, it allows unlimited further additions and withdrawals, although savers should be aware that the withdrawal method depends on how the account is opened.

Loughborough Building Society also offers a rate of 1.30% AER on its Future First account, which can be opened and managed in branch and by post. This account requires a minimum opening deposit of just £1 to open and once open, it allows unlimited further additions. Withdrawals, however, are restricted to four per calendar year.

Annual Access Account by Yorkshire Building Society also offers 1.30% AER and can be opened in branch and by post and then managed both these ways, as well as online. To open this account, a minimum deposit of £100 is needed. Once open, it allows further additions, but withdrawals are restricted to one per calendar year.

How to compare instant access savings accounts

There are several factors savers should look at when comparing instant access savings accounts. The AER rate being offered will likely influence the decision, however, there is no point in choosing an account with a high AER that can only be opened and managed online, when in branch access is something that is required. To help savers compare the accounts within the easy access chart, here are some of the key factors to consider:

  • Rate
  • Opening deposit required
  • Opening restrictions
  • How the account can be opened and managed
  • Bonus rate being offered
  • Whether further deposits can be made
  • Withdrawal restrictions.
Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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