The best instant-access savings rates

Instant-access accounts mean you can get your hands on your money easily, but watch out for sneaky restrictions.

Instant access accounts are a saver's bread-and-butter.

They're easy to set up and to use: perfect for a rainy day fund, the first step in any savings strategy.

Unfortunately, the interest rates on instant access accounts, which shot up last year, appear to have flattened out again.

Furthermore, many of the highest-interest accounts aren't truly 'instant-access' as they have major restrictions on when you can withdraw your money and how much.

If you don't need access to your money you could get better interest rates with a fixed term-deposit and have a chance of beating inflation.

Also, don't forget to use up your £20,000 Cash ISA allowance every year: you can find a comparison of Cash ISAs here.

Finally, take a look at the new generation of savings accounts that will do the saving for you: a computer calculates how much you can afford and makes the transfer. The rates aren't as good but they could help if you struggle to develop a savings habit.

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Bonuses

When it comes to instant access saving, you can either go for an account with a bonus, which boosts your interest rate (usually for about a year), or opt for a gimmick-free account with no bonus, just an upfront interest rate.

What's important to note here is that accounts with bonuses often have similar interest rates to those without bonuses.

So if you're able to get the same interest rate on a gimmick-free account you could save on some hassle.

Top instant access accounts with a bonus

 Marcus has the edge here in that you can renew the bonus each year.

Although you put as much money into this account, we wouldn't recommend saving more than £85,000 with any bank due to the limits of the Financial Services Compensation Scheme (read more about the FSCS here).

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Top instant access accounts without a bonus

*Two withdrawals allowed per calendar year

**Lower rate paid if more than 3 withdrawals per year

To get the best rate for accounts without bonuses you've got to put up with quite a few restrictions. Be aware that banks can change variable interest rates so your rate is not guaranteed in the way that fixed-term deposits are.

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Current account alternatives

At the moment some of the best rates on easy access savings can actually be found in a current account. Most of these do require that you regularly make deposits into the account.

The TSB Classic Plus Current Account is paying a market-leading 5% on balances up to £1,500, although this will decline to 3% in July.

The Nationwide FlexDirect Current Account pays 5% but on account balances between £1 and £2,500. However, you should bear in mind that the rate on this account drops to 1% after 12 months.

The best interest rates of all are on regular saver accounts but note that these aren't instant-access as you need to wait until the end of the year to get your cash.

This article is regularly updated to reflect the latest rates.

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More on savings:

The UK's best Cash ISAs

The top fixed rate savings bonds

The best regular savings accounts

Where to earn most interest on your cash