In a nutshell: There are no get rich quick schemes when it comes to saving. You are protecting, slowly growing and investing your money. Don’t forget that.
Easy Access Savings Accounts are also sometimes known as Instant Access Savings Accounts. But…they are slightly different from each other.
If you want to take out money from your Instant Access Savings Account you can usually get it transferred directly into your Current Account or just get cash from the bank. Really easy.
With an Easy Access Savings Account you will normally need to have a Current Account with the same bank to take your money out. So it’s just a little less flexible.
Now, if you’re thinking of saving, but still want to be able to take out your money without any hassle, then both of these Savings Accounts are pretty much perfect for you.
You normally won’t earn the highest interest, but you get the flexibility you need to use your money whenever you want it.
What Should You Be Thinking Account When Choosing an Easy Access Savings Account?
Saving is easy, you just have to choose to put some money away.
There are pretty much only 4 things you need to think about when looking to open an Easy Access Savings Account:
- How much money you will earn on your savings (the Interest Rate)? – Find the highest ‘realistic’ Interest Rate. Keep your eyes open, if it looks too good to be true then it probably is.
- How much money you need to put in the account when you open it – This could be anywhere from 1p to £15,000. So just pick an account which feels right for you, keep it simple & stress-free
- How will you manage (access) your savings account? – Is it in an app, is it online, do you have to go into the bank branch? Pick a savings account that works best for your lifestyle. I know I have no time to be queuing up in a bank branch to use my money. No way!
- Is your money safe & protected? – Only put your money into a savings account that is protected by a compensation scheme. This means that if anything happens to the bank, some or all of your money will be protected. That’s golden, and you won’t see anyone running away with your cash!
What Questions Do People Usually Ask About Easy Access Savings Accounts?
How Much Can I Save in an Easy Access Account?
Some Easy Accounts have limits to how much money you can put in them, but usually you can put in as much money as you want!
Just know that there is a limit to how much of your savings are protected by schemes.
Now, not all schemes or scheming is bad.
There are pretty decent schemes like the Financial Services Compensation Scheme.
Some people call this the FSCS, which is not catchy at all, but they protect up to £85,000 of the money that you keep in your Savings Account.
What The Hell is AER?
AER, one more fancy term with a really simple meaning!
AER just means the Annual Equivalent Rate. This is how much interest (money on top of your money) the bank is going to pay you.