An instant access savings account, also called an easy access savings account, is a simple way to save money. You can put money in and take it out whenever you like, with no penalties or waiting periods.
These accounts are great for short-term goals or emergencies because your money is always within reach.
In this guide, we’ll explain how these accounts work, how they compare to other savings options, and what to look for when choosing the right one for you.
Instant access savings accounts are a straightforward way to save money and access money when you need it. Let’s take a closer look.
Instant access savings accounts are flexible. You can add or take out money whenever you like.
For deposits, you might set up a regular payment – like £100 from your current account on the 1st of each month. Or you can move money over whenever it suits you. Just be aware that some banks may limit how much you can deposit or keep in the account, so it’s worth checking with your provider.
You can also withdraw money at any time. Maybe you’ve reached a savings goal, like paying for a holiday, or you need a bit extra for everyday spending. Again, some banks may have limits on how much you can take out.
Most instant access savings accounts have a variable interest rate. This means the rate can go up or down, often based on changes to the Bank of England’s base rate.
Some accounts may offer a higher rate. This could be due to:
You can learn more about how interest works in our guide.
As the name suggests, instant access savings accounts let you get to your money quickly. So, if you need cash for a holiday, everyday spending or an emergency, you can take it out whenever you like.
This is different from fixed-rate accounts. With these accounts, your money is locked away for a set time, and you usually can’t touch it until that time is up.
Interest earned on instant access savings accounts is taxable, but in the UK, you get a Personal Savings Allowance (PSA). This lets you earn some interest each year without paying tax.
How much you can earn tax-free depends on your income tax rate:
If your interest goes over your PSA, you’ll need to pay tax on the extra amount.
There are subtle differences between each type of savings account:
| Account type | Access | Interest type | Tax treatment | Best for | Drawbacks |
|---|---|---|---|---|---|
|
Instant Access |
Withdraw anytime |
Variable |
Taxable (within PSA) |
Flexibility and emergency funds |
Rates can change and be lower than fixed |
|
Notice Accounts |
Withdraw after notice (e.g. 30-120 days) |
Variable |
Taxable (within PSA) |
Better rates if you can wait |
Inconvenient for urgent access |
|
Limited Access |
Limited withdrawals per year/month |
Variable |
Taxable (within PSA) |
Slightly better rates with some access |
Penalties or loss of interest if limits are exceeded |
|
Fixed-Rate Accounts |
Locked for a fixed term (e.g. 1-5 years) |
Fixed |
Taxable (within PSA) |
Maximising returns with no need for access |
No access without penalty before maturity |
|
Cash ISAs (Instant Access) |
Withdraw anytime |
Variable |
Tax-free |
Tax-free interest, especially for higher savers |
Annual ISA allowance limit (£20,000 for 2025/26) |
|
Cash ISAs (Fixed-Rate) |
Locked for a set term |
Fixed |
Tax-free |
Long-term tax-free savings |
Early withdrawal penalties |
Instant access savings accounts offer several benefits:
When picking the right instant access savings account, here are a few things to think about:
Most instant access savings accounts let you take out money whenever you like. You won’t be charged a penalty fee for doing this.
But some banks may limit how much you can take out or how often. For example, Saga’s instant access account has a daily limit of £20,000 if you withdraw online. If you need more, you can call our team to arrange it.
Yes – your money is protected by the Financial Services Compensation Scheme (FSCS) if a bank fails. This means up to £85,000 per person (or £170,000 for joint accounts) of eligible savings held with UK banks is covered.
This protection applies to the total amount you hold with each bank. If your savings with one bank go over the limit, the extra amount may not be covered. Banks that share a licence (as part of the same group) are treated as one bank.
If a bank can’t return your money, the FSCS will step in and manage the process for you. To learn more, visit the FSCS website.
There’s no official limit on how many instant access savings accounts you can have.
Most people open accounts with different banks or building societies. But some providers may let you open more than one account with them, too.
Here to support your savings goals
Discover how inflation impacts your savings and explore strategies to safeguard them in our comprehensive guide.
Discover the key differences between saving and investing, and determine which option suits your financial goals best with our guide.
