My favourite savings account

Rachel Robson's favourite easy access savings account just got even better. Find out what makes it stand out from the crowd.

These days it's getting harder and harder to find an easy access savings account that doesn't come with a dozen strings attached.

To me, easy access means being able to get my hands on my cash whenever I want, being able to take out as much or as little as I want, and being able to get to my money quickly - in other words, not having to rely on snail mail.

I'm also a little bit wary of savings accounts with bonus rates - after all, they are a great way of luring in customers who, after a year, see their bonus disappear, only to be replaced by a pathetic rate of interest.

But while finding a good savings account can sometimes feel like you're hunting for a needle in a haystack, there's one easy access savings account that has really caught my eye. And that's the ING Direct Savings Account, which this week increased its rate from 3% to 3.2%!

The top six

Before I go on and wow you with all of the wonderful benefits of the ING account, let's put things into perspective and see how it compares to some of the top players in the market right now:

As you can see, the ING Direct Savings Account fares pretty well in terms of interest rate, coming in in third place.

But, of course, that means there are two savings accounts paying a higher rate of interest - the Coventry Building Society 1st Class Postal Account and the Egg Savings Account. So if it's not paying the very best interest rate in the market, what exactly is it that I think makes the ING account so great?

Well, for a start, there's none of this bonus rate malarkey. Instead, the ING account offers an interest rate of 3.2% which is guaranteed for the entire first year. That's pretty unheard of in the world of easy access savings accounts.

Admittedly, once that year is up, the interest rate drops to a paltry 0.5% - so it's time to move your money again.

But at least, for the next 12 months, you'll have peace of mind that the rate isn't going to suddenly drop.

So what about the market-leader - the Coventry Building Society 1st Class Postal Account? Yes, this account offers a higher rate of interest overall - at 3.3% - including a fixed rate bonus of 1.3% for the first year. But this account can only be operated by post! You'll be sent a cheque each time you wish to withdraw your cash - so it's hardly 'easy access'.

Furthermore, because the overall rate is variable, it could change at any time. And that means that although your rate won't drop below the bonus level of 1.3% in that first year, there's no guarantee that it won't fall below the current 3.3%.

Similarly, the Egg savings account offers a rate of 3.25% with a fixed bonus of 2% for 12 months. In this instance, you know your rate won't fall below the bonus level of 2%, but it could fall below 3.25% during that first year.

The Alliance and Leicester Online Saver Issue 5 account takes it one step further by offering an interest rate of 3.15% which includes a variable bonus rate of 2.65% on balances under £25,000* for the first 12 months. So this means you've got no guarantees whatsoever that the rate won't change during that first year - there's not even a fixed bonus to fall back on.

So in my book, if you're after a bit of security and don't want your interest rate to change in the first year, the ING Direct Savings Account wins hands down.

So what else?

In sharp contrast to the table topping Coventry Building Society account, the ING Direct Savings Account also allows you to access your savings online - which, personally, I regard as a bonus. However, if you'd rather speak to a human, not a machine, about your account, you can also access your savings by phone.

The ING Direct account also gets my vote due to the fact that you can withdraw money at any time. The Coventry account, on the other hand, limits you to just four penalty-free withdrawals per year! Not only that, but it also requires you to withdraw a minimum of £1,000 each time. What a pain in the neck.

The Coventry account also requires a deposit of at least £1,000. By comparison, you can open the ING account with just £1, although annoyingly, you can only make this deposit by cheque from a current account. (This current account will also be your linked account for withdrawals.)

How safe is the ING Direct account?

At this point, it's worth noting that the ING savings account is protected by the Dutch compensation scheme, not the UK one. So if the bank went bust, you'd receive up to €100,000 of your money - which beats the £50,000 offered by the Financial Services Compensation Scheme (FSCS).

Is there a downside?

Well, unfortunately, yes there is.

The major problem with the ING Direct savings account is that in order to qualify for the fantastic interest rate, you need to be a new customer.

Everyone say it together now: "Boo! Shame on ING!"

While this doesn't make the account any less attractive for new customers, if you're an existing ING customer looking for a new home for your savings, I think the Egg Savings Account is a good bet, offering a rate of 3.25%, with a fixed rate bonus of 2% for the first year. (Of course, as I said above, this rate could change at some stage - although it won't fall below the bonus rate in the first year.) Once again, you only need £1 to open the account and there are no withdrawal restrictions.

However, you can only operate the Egg account via the internet. So if you'd prefer to have a few more access options, why not check out the Citibank Flexible Saver Issue 5? This allows you to access your savings whenever you want via the internet, phone or post. And you'll still receive an attractive interest rate of 3.10% (including a fixed 12 month bonus of 2.06%).

But, overall, if you're not already an ING customer and you're looking for a better savings account, my suggestion is to plump for the ING Direct Savings Account. It offers a unique combination of true instant access with a highly competitive fixed rate, and it's transparent and easy to operate. What more could you possibly want?

*Whatever your balance, you are guaranteed a 1.65% variable bonus.

More: Save now or face the consequences | Why savings rates are better this year