These are accounts that pay interest and allow you to withdraw money whenever you need it. You can save as little or as much as you want each month. You can often open an account with an initial deposit of as little as £1.
Are instant access savings accounts for you?
Instant access savings accounts are for you if you have spare cash and want to:
- earn a better return than from your current account
- save at your own pace
- be able to withdraw money whenever you want
- not take risks with your money.
Risk and return
Did you know?
If you don’t need instant access to your savings, you could earn more with fixed term savings options such as fixed rate savings bonds or regular savers.
- They usually offer higher interest rates than current accounts.
- The interest rate isn’t as high as with regular savings accounts or savings bonds, which would lock your money in.
- Your savings won’t hold their buying value in the long run if the interest rate on the account is less than the rise in the cost of living (inflation).
Join our Facebook group
Join our private Budgeting and Saving Facebook group for money-saving tips and support from a community of savers.
How safe are your savings?
Cash you put into UK authorised banks, building societies or credit unions is protected by the Financial Services Compensation Scheme (FSCS).
The FSCS savings protection limit is £85,000 (or £170,000 for joint accounts) per authorised firm.
It’s worth noting that some banking brands are part of the same authorised firm.
If you have more than the limit within the same bank, or authorised firm, it’s a good idea to move the excess to make sure your money is protected.
Find out which banks are part of which authorised firms on Which?
Find out more in our guide How safe are my savings if my bank or building society goes bust?
Help with the cost of living
Worrying about money because of rising rents, high energy bills or debt? If so, we’re here to help.
Take the first steps to find your way forward with our guides to help you with the cost of living.
How to open an instant or easy access savings account
Did you know?
You can open an instant access savings account with as little as £1 and save however much you want each month.
You can open an instant or easy access account directly with a bank or building society. Most of them will let you open an account:
- online
- over the phone or
- by going into a branch.
You might need to have a current account with your bank or building society to open an instant access savings account. Check with them before you get started.
Tax on your savings
If you’re a basic-rate taxpayer, you have a personal savings allowance of £1,000. This means your first £1,000 of savings income is tax-free.
Higher-rate taxpayers benefit from a smaller personal savings allowance of £500.
If you earn interest that exceeds your Personal Savings Allowance in a tax year, you may need to inform HMRC to pay any tax due.
Starting rate for savings
As well as your personal savings allowance, the starting rate for savings is aimed at supporting savers on the lowest incomes.
For 2025/26 it is £5,000. This means that up to £5,000 of the interest received from savings is tax-free. This reduces for every £1 you earn over the Personal Income Tax Allowance of £12,570 for the 2025/26 tax year.
So if your overall taxable income – income from employment plus interest on your savings – is £18,570 or less, you may not need to pay tax on income from your savings. This amount is made up of your annual Personal Income Tax Allowance, plus the 0% rate for £5,000 of savings income, plus the £1,000 new Personal Savings allowance.
Find out more in our guide How tax on savings and investments works
Instant access accounts that are cash deposit ISAs will give you tax-free interest. Read our guide ISAs and other tax-efficient ways to save or invest
Find out how to get tax-free interest on savings or claiming tax back Opens in a new window on GOV.UK
If things go wrong
If you’re unhappy with the service from your bank or building society, you can complain to the Financial Ombudsman if you can’t resolve the problem directly.
Find out more in our guide How to complain to your bank, lender or card provider
Choosing a savings account
Comparison websites are a good starting point for anyone trying to find a savings account tailored to your needs.
Find out more in our guide Get the most out of comparison websites
These websites are good place to start when you’re looking for a savings account:
Comparison websites won’t all give you the same results. So make sure you use more than one site before deciding.
It’s also important to do some research into the type of product and features you need before making a purchase or changing provider.
