What are easy access savings accounts?
Easy access savings accounts let you deposit and withdraw money whenever you need it without penalties, making them ideal for emergency funds or short-term savings. Unlike fixed-rate options, these accounts offer variable interest rates that can change with the Bank of England’s base rate. As of October 2025, the best easy access savings accounts provide up to 4.75% AER (Annual Equivalent Rate, which shows the true return including compounding).
Benefits and drawbacks
The main benefit is flexibility: you can access your cash instantly, often online or via app, which suits those who value liquidity over higher locked-in rates. They also often have low or no minimum deposits, starting from £1, and are protected by the FSCS up to £85,000 per person per institution. However, drawbacks include lower rates than fixed bonds—averaging 3.2% compared to top easy access at over 4.5%—and rates that can drop suddenly if the base rate falls.
A list of key pros and cons:
- Instant withdrawals without notice periods.
- Competitive variable rates, currently up to 4.75% AER.
- Low entry barriers for most UK residents aged 18+.
- Rates fluctuate, potentially reducing returns.
- May not beat inflation long-term without switching.
- Limited perks like bonuses for new customers.
How interest is calculated
Interest on easy access savings is calculated daily and paid monthly or annually, based on your AER. For example, on a £10,000 balance at 4.75% AER, you’d earn around £475 yearly, assuming no changes. Use our savings calculator to estimate returns, but remember variable rates depend on market conditions.
Tax considerations
Non-ISA easy access accounts fall under the Personal Savings Allowance (PSA): £1,000 tax-free for basic rate taxpayers, £500 for higher rate, and none for additional rate in 2025. Exceed this and you’ll pay income tax on interest. For tax-free options, consider a cash ISA variant—link to best cash ISA alternatives.
Top easy access savings accounts UK 2025
For 2025, the best easy access savings accounts UK prioritise high AER, easy access, and FSCS protection. Top picks include online challengers like Chip and Plum, offering 4.75%+ with no minimums, outperforming high-street banks.
Best overall accounts
Chip’s easy access account leads with 5.00% AER (variable) for balances up to £85,000, no fees, and app-based management. Plum follows at 4.75%, with cashback perks. These beat traditional banks by focusing on digital savers.
Highest rate providers
Providers like Trading 212 and Moneybox offer the best rates easy access savings at 4.80% AER, but check eligibility—UK residents only, with app verification. For the best easy access savings rates, compare daily via Moneyfacts.
Online vs high-street options
Online accounts dominate with higher rates (4.5%+ vs 2-3% from high-street like NatWest), but require tech comfort. High-street suits branch access, though yields lag. For best easy access savings account UK 2025, online wins for most.
Current easy access savings rates comparison
Top easy access savings rates hover at 4.75% AER in October 2025, far above the 3.2% average. Rates are variable, influenced by the Bank of England.
Rate table for 2025
| Provider | AER (%) | Min Deposit | Max Balance | Withdrawal Terms |
|---|---|---|---|---|
| Chip | 5.00 | £1 | £85,000 | Unlimited |
| Plum | 4.75 | £0.01 | Unlimited | Instant |
| Moneybox | 4.56 | £500 | £85,000 | Daily |
| NatWest | 3.50 | £1 | Unlimited | Instant |
| Yorkshire Building Society | 4.00 | £10 | £2m | No notice |
Data sourced from Moneyfactscompare easy access savings as of 28 October 2025; rates variable.
Factors affecting rates
Rates track the base rate (currently 5%), but providers adjust variably. Inflation at 2.1% means top rates beat it, unlike averages. Over 12 million UK adults have under £1,000 saved (Finder UK, 2024), highlighting the need for better options.
Projections for base rate changes
If the base rate cuts to 4.5% by mid-2025, expect top easy access at 4.25%. Monitor via Bank of England interest rates. MoneySavingExpert predicts stability, but switch promptly for the best easy access savings UK.
How to choose the best easy access savings account
Prioritise AER above 4.5%, unlimited withdrawals, and FSCS cover. For niche needs, like business, seek higher limits.
Eligibility and limits
Most require UK address, 18+, no bankruptcy. Min deposits £1-£500; max often £85,000 for FSCS. Seniors (over 60s) get perks like 4.75% from Shawbrook.
Safety and protection
All regulated UK providers offer FSCS protection up to £85,000—your money is safe if the bank fails. Verify via FSCS savings protection.
Switching tips
Compare rates, transfer via CHAPS (free for most), and notify old provider. Martin Lewis recommends annual switches for max returns—see Martin Lewis best easy access savings.
Reviews of top providers
Chip scores 4.8/5 on Trustpilot for seamless app and 5% AER, though some note slow support. Plum (4.7/5) excels in automation, ideal for irregular savers. Users praise Moneybox for 4.56% but criticise £500 min. Overall, online providers rate higher than high-street for rates and ease. For MSE insights, visit MoneySavingExpert best interest savings.
Provider specifics
Chip: No fees, daily interest. Drawback: App-only.
Plum: Unlimited access, cashback. Eligible for businesses too.
User experiences
Savers report earning £400+ yearly on £10,000, but warn of rate drops. One review: ”Switched from NatWest—doubled my interest instantly.”
Alternatives to easy access savings
If flexibility isn’t key, consider fixed-rate bonds for 4.55% locked. Cash ISAs offer tax-free easy access—link to tax-free easy access options. For businesses, accounts like Starling’s hit 3.5% with higher limits.
Frequently asked questions
What is the best easy access savings account UK?
The best easy access savings account UK in 2025 is Chip at 5.00% AER, offering unlimited withdrawals and FSCS protection for balances up to £85,000. It suits most savers with its low £1 minimum and app convenience, outperforming high-street options. Compare via Moneyfacts for your needs, as rates vary by eligibility.
Which bank has the highest easy access savings rate?
Trading 212 leads with 4.80% AER among banks, beating NatWest’s 3.50%. This rate applies to UK residents with verified apps, but confirm FSCS cover. Higher rates often come from challengers, not traditional banks, due to lower overheads—switch to maximise in a falling base rate environment.
How does easy access savings work?
Easy access savings work by letting you add or withdraw funds anytime without notice, earning variable interest calculated daily on your balance. Interest pays monthly, compounded for AER accuracy. They’re ideal for emergency pots but require monitoring rates, as providers like Plum adjust with market shifts.
Are easy access savings accounts safe?
Yes, easy access savings accounts from UK-regulated providers are safe, protected by the FSCS up to £85,000 per person if the institution fails. Avoid unauthorised firms; stick to FCA-listed ones like Moneybox. Even in downturns, your capital is secure, though interest isn’t guaranteed.
What is the best easy access cash ISA?
The top easy access cash ISA is Plum at 4.75% AER tax-free, within the £20,000 allowance. It allows instant access without penalties, suiting flexible savers over PSAs. Compare with fixed ISAs for higher rates if you can lock away funds—consult HMRC for your tax band.
How much can I earn on £10,000 in easy access savings?
On £10,000 at 4.75% AER, you’d earn about £475 annually, paid monthly as £39.58. This assumes no withdrawals and stable rates; actual returns vary. For basic rate taxpayers, it’s mostly tax-free under £1,000 PSA, but higher earners may owe 20% on excess—use a calculator for precision.
What are the best easy access savings accounts for over 60s?
For over 60s, Shawbrook offers 4.75% AER with no age penalties, plus senior perks like phone support. These accounts match general rates but add accessibility features. Eligibility is standard UK residency; avoid low-yield high-street for better returns in retirement planning.
