The five top easy access savings accounts

We highlight the five best flexible savings accounts currently on the market.

I’m self-employed, so I pay my tax via self-assessment. I squirrel away a percentage of all my earnings in an easy access savings account, ready to hand over to HMRC at the end of the year.

An easy access account suits me well, because I never know exactly how much I’m going to be putting into it, and when.

However, the top rates for easy access accounts usually last for no more than 12 months. And so every year, I have to track down a new one offering a decent return on my investment.

Here, I’m going to highlight the top five easy access accounts currently available - and what you need to know about each of them.

The leaders of the pack

Here are my top picks, ordered by the interest rates they offer. All rates are variable unless otherwise stated.

I’ve chosen to ignore accounts that require a notice period before you can withdraw your cash. That doesn’t sound very easy access to me!

A closer look

Let’s look at each of my choices in a bit more detail.

The best truly easy access rate is offered by the Family Saver account from Coventry Building Society. It has a variable rate of 3% AER, including a fixed 1% bonus element for the first 12 months.

You can start saving from just £1, there are no withdrawal restrictions, and you can access the account online.

However, the major catch with this account is that it’s only available to a specific group of people: To be accepted, you need to have children under 16 and be receiving Child Benefit.

You need to get that Child Benefit paid directly into the account (HMRC can do this for you). And if you stop receiving it while you still have the account, you’ll need to set up a standing order for the same monthly amount, or the account may be closed.

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The next best rate - and the top one that’s available to most of us - comes with the Post Office’s Online Saver account. This offers a variable rate of 2.9% AER, including a fixed 1.25% bonus for the first 12 months.

You can start saving from £1, there are no withdrawal or deposit restrictions, and the account can be accessed online.

Post Office accounts used to come under the Irish government’s financial protection scheme. Now, however, they’re afforded the same £85,000 protection as other accounts that fall under the UK government’s Financial Services Compensation Scheme.

However - don’t automatically plump for this account without sizing up the alternatives. Although the third account on the list has a slightly lower rate of interest, I actually find it a more tempting option.

The ING Direct Savings Account offers a rate of 2.8% AER, with no bonus element. What makes it unique is that this whole 2.8% rate is fixed for the first 12 months.

That means you won’t get any nasty surprises (in theory, any of the other accounts could slash the non-bonus part of their interest rates almost immediately).

Again, you can start saving from just £1, there are no deposit or withdrawal restrictions - and the account can be accessed online or by phone.

Next up is the MySave Online Plus Account from Nationwide. This has a variable rate of 2.78% AER (including a fixed 1.25% bonus for the first 12 months) and the account can be accessed online.

However, although the rate is nearly identical to that of the ING account, a couple of features make Nationwide’s offering much less attractive.

First, you’ll need to deposit at least £1,000 to open the account. And second, serious withdrawal restrictions apply.

You’re only allowed to make one penalty-free withdrawal per year. Try to make any more than that, and you’ll receive a measly 0.1% rate of interest for the months during which those withdrawals were made.

My final pick is the eSaver (issue 2) account from Santander. It offers variable rate of 2.75% AER (which includes a 2.25% bonus for the first 12 months) and can be started with just £1.

On the downside, the bonus element is also variable. So (though unlikely) it’s possible that your decent rate could disappear completely at any time.

However, this account does have one advantage over the others: It allows you to access your cash via ATM, as well as online. This means you’ll be able to grab your funds more quickly in an emergency.

Just be aware that while you can make unlimited withdrawals online, ATM withdrawals are limited to £300 per day.

Other options

If you’ve got a lump sum you’re able to stash away long-term, you may be able to get a much higher, fixed rate on your savings: Read The new savings account that beats inflation to find out more.

Alternatively, certain tax-free cash ISAs do allow instant access to your money. The top ten cash ISAs for 2011 will point you in the right direction.

More: Get a perfect savings account | Get your hands on some extra cash | The ten most misleading savings accounts