What is an easy access savings account? | YBS
Reading time 5 minutes
At a glance:
Easy access is a type of savings accounts that allows you to withdraw money.
Easy access accounts often have interest rates that are variable, so they can go up or down.
They can be subject to withdrawal limits, notice periods or a short wait before accessing your money.
How does an easy access account work?
An easy access account allows you to withdraw money during its term. This differs from other types of savings account that may involve locking your money in for a set period, for example, a fixed rate bond.
You can open a YBS easy access savings account online by depositing as little as £1.
There might be limits on how often you withdraw money. This is the difference between a limited or unlimited access account.
You can open a YBS easy access savings account online by depositing as little as £1.
There might be limits on how often you withdraw money. This is the difference between a limited or unlimited access account.
Limited access or unlimited access?
Easy access savings accounts can have rules around how often you can withdraw money. Taking money out beyond the limit of an account could mean your interest rate goes down.
There are two main levels of access:
There are two main levels of access:
Limited access – You can withdraw money within limits. This can mean you only withdraw money a certain number of times a year.
Unlimited access – You can withdraw money as often as you like.
Fixed or variable easy access accounts?
An easy access savings account often has a variable rate. This means the interest rate can go up or down. Some easy access accounts may be fixed rate, but this is less common.
Easy access Cash ISAs explained
An easy access Cash ISA is a type of easy access account. With an easy access Cash ISA, you can withdraw money and won’t pay tax on any the interest you earn.
When is the interest paid on an easy access account?
Easy access accounts often pay interest yearly, either on a date that you choose or the date the account was opened. Interest can also be paid monthly. When you receive interest will depend on the account you choose.
What are the benefits of an easy access account?
Simplicity - Easy access savings accounts are straightforward to set up and can be managed online.
Low start-up cost - Some accounts can be opened with as little as £1.
Earn tax-free interest - Save up to £20,000 per year with an easy access Cash ISA. You won’t pay tax on any interest you earn.
What to think about
Limits on withdrawals – you may only be able to take out money a few times a year.
Variable interest – it is common to have variable interest on an easy access account. This means the interest rate can go down as well as up.
Lower interest – Fixed rate accounts, where you cannot withdraw money, may have higher interest rates. This isn’t always true however.
How many easy access accounts can I have?
There’s no limit to how many easy access accounts you can have. As long you’re eligible, you can open as many as you like.
How many easy access Cash ISAs can I have?
You can open as many easy access Cash ISAs as you want across different providers. But, you can only open one Cash ISA with YBS.
The content on this page is for reference. It is not financial advice.
For help with money issues, try MoneyHelper.
For help with money issues, try MoneyHelper.
