🔔 More best buy ‘easy access’ accounts – but watch out for the catches!!

Last week saw the launch of a market-leading easy access account from Skipton Building Society. The Skipton Triple Access Saver Issue 1 is paying a rate of 0.60% AER, the highest easy access rate we’ve seen since December last year. 

This was rapidly followed by an increase to the rate on the Investec Online Flexi Saver instant access account, from 0.45% AER to 0.58%, which pushed the account into 2nd place - and this new rate is effective for both new and existing account holders.

But then, as the week ended, Cynergy Bank matched Skipton with a new issue of its Online Easy Access Account (Issue 41) also paying 0.60% AER

These rates came after the launch by Coventry Building Society of an easy access account paying 0.55%, which broke the 0.50% stalemate that had been in place for weeks.

Beware of the catches

While all of these accounts are in our best buy easy access table at the time of writing, there are terms and conditions that you need to be aware of on four out of five that are currently included – otherwise you might not have the access to your money that you think you have, or be earning the interest rate that you expect.

The clue that something is different is at least often in the names of the accounts, but not always – so it illustrates the importance of checking the terms and conditions before opening a savings account.

As the name Skipton Triple Access Saver implies, you can make a maximum of three withdrawals a year. Any further withdrawals will not lead to a penalty, but it will mean the account is closed so you’ll need to find another home for your cash.

The Coventry Building Society’s Limited Access Saver (Online) (5) is similar in that it allows limited withdrawals each year. It allows more penalty free withdrawals than Skipton - six per year – but any additional withdrawals will result in a penalty equivalent to 50 days’ loss of interest.

And it’s not just limited withdrawals that you need to watch out for. The Cynergy Online Easy Access Account plus the Marcus by Goldman Sachs Online Savings Account both include an enhanced rate in the headline rate advertised, also referred to as a bonus, for the first 12 months that you hold them. This means that the rate is guaranteed to fall after a year – so you are likely to need to switch in order to make sure you continue to earn a top rate.

Of course, the underlying rate and the variable rate of accounts that don’t have a bonus can be changed at any time. This can be either up (as in the case of the aforementioned Investec account which has neither bonus nor restricted withdrawals) or down.

Keeping a close eye on the rate of interest you are earning on a regular basis is the real key to making your cash work as hard as possible – but remember to check out the Terms and Conditions too, so that there are no nasty surprises.