What is an easy access savings account?
An easy access savings account is a type of financial product that enables you to earn interest on your savings while retaining the flexibility to withdraw or add money without losing interest earned or paying additional fees.
My Community Finance works with credit unions that provide competitive rates on easy access savings accounts for their members.
Credit unions are not-for-profit organisations that provide fair, ethical banking to their members. Just like high-street banks, our partner credit unions are regulated and authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority, with all savings protected under the Financial Services Compensation Scheme (FSCS) up to £85,000. Any profits made are returned to members by offering better interest rates or reinvested back into the credit union so it can improve its services and reach more people.
To open an easy access savings account with one of our partner credit unions, you need to become a member. The credit unions we work with accept members from almost all fields of employment as well as members of several organisations including the Co-op and National Trust. You can find out more information about eligibility here.
How much do I need to open an easy access savings account?
You can save between £1,000 and £85,000 with an easy access savings account from one of our credit unions. However, they only start offering interest on deposits over £1,000. If you save £20,000 or more you will be offered a special higher interest rate. Your money will be protected by the Financial Services Compensation Scheme (FSCS), which will protect up to £85,000.
What do I need to open an easy access account?
To open an easy access savings account with one of our partner credit unions, you’ll need to:
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Be aged 18 or over
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Live in the UK (Excluding the Isle of Man)
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Have a personal bank account in the UK
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Be eligible for membership
You may need to provide further documents once you’ve applied for an easy access account. This is simple and easy to do on our online portal and we also have a UK based customer support team you can email or call with any questions.
How do I open an easy access account?
You can use our online form to apply for an easy access savings account with one of the credit unions we work with. Simply fill in your details and tell us how much you want to save.
Next, we’ll connect you with one of our partner credit unions and you will review the terms and conditions. If you choose to proceed, the application will be passed onto our team to make sure they have everything they need.
If you are eligible for an account, the credit union will aim to set this up for you within three business days. Occasionally, the application process may take longer, and we may need to ask you for more information.
Can I have more than one easy access account?
There is no limit on the number of easy access savings accounts you can have across different providers. You can therefore open one with one of our partner credit unions even if you already have one with another bank or credit union. However, you can only have one easy access account through My Community Finance with our partner credit unions.
What are the pros and cons of easy access savings accounts?
No matter what you’re saving for, it’s a good idea to weigh up the advantages and disadvantages of different savings accounts to find the right one for you.
Here we’ve listed some of the pros and cons of easy access savings accounts:
Pros:
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Easy access to your money - With an easy access account, you can withdraw some or all of your savings without losing interest or paying fees. It can be a great way to save if you know you have upcoming payments you need the money for or if you put money aside for an emergency, such as a broken boiler or car repair you hadn’t budgeted for.
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Earn interest on your balance - The easy access savings accounts offered by our partner credit unions often have competitive interest rates compared to high-street banks and pay out the interest to you monthly.
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You can add to your savings whenever you want - Whether you’re saving for a holiday, new car, or a deposit on your first home, you can add money to an easy access account whenever you want. This can be especially helpful if you receive bonuses through your employer, earn extra commission, or you’re planning on selling goods to raise money to add to your savings.
Cons
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Lower interest rates than fixed-term accounts - Whilst the credit unions we work with offer competitive interest rates, easy access savings accounts usually offer lower interest rates than fixed-term savings accounts.
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The temptation to spend - If you’re not disciplined with your money, you could be tempted to withdraw from your savings to make impulse purchases.
