The amount of money savers hold in easy-access accounts has surged past £1 trillion for the first time.
Easy-access is by far the most popular type of account with those wanting to keep money close at hand. And UK Finance, the banking industry trade body, says people continue to favour these accounts over those that tie your money up.
Savers now have a record sum in instant access accounts after adding £3 billion in September, according to figures from the Bank of England.
Easy-access is by far the most popular type of account with those wanting to keep money close at hand
The average rate paid on all easy-access accounts is now 0.4 per cent — up from just 0.1 per cent in January.
Rachel Springall, of analysts Moneyfacts, says: ‘Having quick access to cash during uncertain times is wise, as it could then be used to cover unexpected costs at short notice.’
Best deals on online accounts include Al Rayan Everyday Saver 3 (2.81 per cent, Marcus By Goldman Sachs (2.5 per cent) and Investec Online Flexi Saver (2.45 per cent). Zopa pays 2.4 per cent through an app-based account.
In the High Street, Swansea BS Instant Access (2 per cent), Kent Reliance Easy Access (2 per cent on over £1,000), Skipton BS Everyday Saver (1.9 per cent) and Monmouthshire BS Escalator (1.8 per cent) are among the best payers.