Seven super online savings accounts

Are you after a savings account with a top rate and instant online access? Well, look no further...

There’s nothing more annoying than discovering a really competitive savings accounts, only to find you’ll have to travel all the way to a branch 200 miles away to open it.

Branch-based accounts, while often paying top rates, are just no good for busy savers. After all, who has the time to ask for a withdrawal in person every time we need to dip into our savings? It’s far too much hassle, so what you need instead is an account for modern times - an internet saver.

Better still, the best-buy internet accounts are also offering the highest rates on the easy access market right now, so you won’t need to compromise the return on your cash, and you’ll get the convenience of opening and running your new account online.

The table below shows a selection of the best internet savers that you can open online in a matter of minutes:

Top seven internet savers

Account	% AER	Bonus included in the rate	Minimum deposit	Good to know
AA Internet Extra Account	2.80%	2.30% for 12 months	£1	-
Egg Savings Account	2.80%	2.30% fixed for 12 months	£1	Rate reverts to standard rate, currently 0.50%, after a year. New money only.
Halifax Web Saver Extra	2.80% for current account customers, 2.60% for non customers	No	£1	1 penalty-free withdrawal per year. Further withdrawals lose 30 days interest.
ING Direct (UK) Savings Account	2.75% fixed for a year	No	£1	Rate reverts to standard rate, currently 0.50%, after a year. New customers only.
Tesco Internet Saver	2.75%	1.50% for 12 months	£1	Rate reverts to standard rate, currently 1.25%, after a year.
Sainsbury’s Finance Easy Saver	2.70%	2.20% bonus for 12 months	£1	Rate reverts to standard rate, currently 0.50%, after a year. 5 withdrawals per year. Rate drops to standard rate if further withdrawals made.
Scottish Widows Bank Internet Saver	2.70%	0.69% for 12 months	£1	New customers only

Before we go any further, I know these rates don’t look particularly impressive. But the fact of the matter is, if you want instant access to your cash, you won’t be able to do better anywhere else.

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That is, unless you opt for a high interest current account - such as the Santander Preferred In Credit Rate Account - where you can earn 5% fixed for a year, and take your money out whenever you need it. Although, you should know that the generous rate only applies to the first £2,500 of your balance. And to qualify, you must fund the account with at least £1,000 every month and transfer at least two standing orders or direct debits over from another current account.

Top dogs

If you don’t meet the criteria for a high interest current account, you already have one, or you have a larger amount to save than £2,500, the accounts shown above are your best option. Topping the table is the AA Internet Extra Account and the Egg Savings Account which both pay a rate of 2.80% including a 2.30% bonus for 12 months on savings of £1 plus.

That said, I think the Egg account is slightly better as the bonus it offers is fixed giving savers a guaranteed minimum return for the next year. These days a feature like this is valuable because it prevents the bank from slashing your return which is a risk with any variable rate account.

That said, the bonus only applies to new accounts opened with new money - in other words, money not already held in any Egg Savings Account.

Recent question on this topic

kanfoosh asks:
Hi all Are there any savings accounts (ISAs or anything else) that make it difficult for you to withdraw cash quickly? I need it as a disincentive!
- MikeGG1 answered "Iff you invest in Index-linked certificates from NS&I, the contract would be for 3 or 5 years to..."
- LoveKat answered "Depending on whether you have a lump sum or want to make contributions as you go, then you could..."
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The Halifax Web Saver Extra also offers the same top rate of 2.80% but only to its existing current account customers. Everyone else will earn just 2.60% which means it slips right off the end of the table. Remember this account only allows one penalty-free instant access withdrawal each year. Further withdrawals are subject to 30 days loss of interest on the amount you take out. You should only choose this account if you know you won’t need to raid your savings often.

My favourite account

Of all the seven accounts shown, however, my favourite is the ING Direct (UK) Savings Account. It offers a slightly lower rate of 2.75%, but the return is guaranteed for a whole year. This means you won’t need to move you savings at all in the next 12 months, unless a more competitive account is launched and you want to take advantage of a better rate. It also offers penalty-free access whenever you need it.

The only downside is the account is only available to new customers. That means, anyone who hasn’t held an ING Direct Savings Account in the last six months

Things to watch out for

There are two things you should be wary of with any instant access savings account. The first is the withdrawal restrictions. Instant access means you can dip into your savings without giving any notice, but that doesn’t necessary mean there won’t be a penalty. You should thoroughly check the terms and conditions before you apply.

Secondly, make a diary note of when the bonus disappears off your account (if applicable). You’ll see from the table that many of the accounts revert to paying the much lower standard rate once the introductory bonus period is over. Be ready to switch your savings to the new market leader at this point.

Compare savings accounts at lovemoney.com

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