A Guide To Easy Access Savings|Saga Money

Navigating the world of savings can be daunting. However, easy access savings accounts offer a flexible and straightforward solution. Whether you’re looking to build an emergency fund or save for a future goal, these accounts allow you to access your money whenever you need it.

In this guide, we delve into the world of easy access savings, exploring the key aspects and their pros and cons.

What is an easy access savings account?

Easy access savings accounts let you take out money whenever you need it. You can deposit money and watch your savings grow, knowing you can use it anytime. Your money earns interest, at a variable rate, which means the interest can fluctuate.

There are different types of easy access savings accounts, including Cash ISAs, where you can pay in up to £20,000 tax-free interest per year.

These accounts are ideal for emergencies, such as car repairs or unexpected purchases like a new TV. They're also perfect for specific savings goals, whether you're planning a holiday or saving for a cruise.

One thing to watch out for when you are considering an easy access savings account is if there are any penalties around how you use your account. Whilst true easy access accounts often don’t have penalties, that is not always the case.

A common penalty is a limit on the number of times you can withdraw from your account, often in a set time period e.g a year. Too many withdrawals and you may incur penalties such as a reduction to your interest rate. With the Saga Easy Access Savings Account, there are no penalties for accessing your money.

How do easy access savings work?

Easy access savings accounts are straightforward. Here's how they work:

Open an account: Choose a provider, open your account and deposit your money. Note: Each provider will have its own min and max deposit levels and terms and conditions.
Keep adding money: Once your account is open, you can keep adding money, up to the limit the account provider sets.
Earn interest: Your savings will accrue interest, with rates subject to change depending on the provider and influenced by things such as the Bank of England base rate.
Withdraw your money: Depending on your provider, you can take out your money whenever you need it. You can withdraw online or via a mobile banking app, over the phone or by popping into your local branch. Different providers have their own terms and conditions, so it is important to review them carefully, and remember easy access does not necessarily mean instant access, so check with your provider how long it may take to access your funds.

How many easy-access accounts can I have?

You can open as many easy access savings accounts as you want, including a Saga Easy Access savings account , provided by Goldman Sachs International Bank, and others from different providers. Just be mindful not to open more accounts than you can handle.

Make sure you can manage and keep track of all of them, that way you can see what interest you are earning and make sure it continues to be the right account for your needs

Pros and cons of easy access savings accounts

Easy access savings accounts have many benefits, but there are also a few drawbacks to keep in mind.

Pros	Cons
Flexibility, the ease of accessing your money when needed and will often offer a better interest rate than if you were to leave that money in your current account.	Variable interest rates mean rates go down can go up and down, rather than being fixed or guaranteed..
Earn interest on your savings. The higher you keep your balance, the more interest you can earn.	Typically, easy access savings accounts can offer lower interest rates than fixed-term accounts because the funds are more readily accessible and not locked away for a set period.
You can deposit your money anytime. This way, you can add more to help build up your savings pot.	You may be tempted to dip into your savings and spend money, something you can’t do with a fixed-term account.
Most easy access savings accounts allow you to withdraw your money whenever you like. Some may have withdrawal limits.	Some providers offer introductory bonus rates that may change after a period of time. It's important to review the terms and understand what happens once the introductory period ends.
Easy to set up and there often no account fees to pay, but again always be sure to check account T&Cs with any provider. With Saga, there are no fees and you can open from just £1	The Financial Services Compensations Scheme (FSCS) protects individual accounts up to £85,000 and joint accounts up to £170,000. However, any funds exceeding these limits are not covered in the event of a bank failure.