If you’re saving, chances are there’s something you’ve got your eye on. A big life moment, a rainy-day fund, a long-overdue adventure – whatever the reason, we know it’s rarely just about the savings account itself (although, here at Hodge, we do think they’re pretty great!). It’s about what your savings account will give you – freedom, flexibility, stability, and possibility.
And because you’re saving with a purpose – maybe even a few – the savings account you choose can make a big difference in how quickly and comfortably you reach your goal. If locking your money away feels like it could add more hurdles than offer more choices, say hello to an easy access savings account. It might be exactly what you’re looking for: a way to grow your money with interest, while keeping it close enough to reach whenever you need it.
Why flexibility matters when saving
The way you save should work with your life, not against it. Depending on your financial situation and saving style, a flexible savings account can make all the difference.
With an easy access account, you can add money when it suits you – whether that’s regular top-ups or occasional lump sums. And just as importantly, you can withdraw money from your easy access savings account whenever you need to. That might be because you’ve reached your goal and want to make the big purchase or maybe something unexpected has come out of the blue and you need access to your money. Either way, having flexible access means you’re in control.
This kind of flexibility means you can save on your own terms, adapt to life changes and have peace of mind that your money is growing – without locking it away.
What are easy access savings accounts?
An easy access savings account is designed to do exactly what it says on the tin. It lets you save your money, earn interest and access your money when you need to – without penalties or restrictions.
Savings accounts and the Personal Savings Allowance
You’ll typically earn interest on your balance, and thanks to the Personal Savings Allowance (PSA), most savers won’t pay tax on the interest they earn. Basic rate taxpayers can earn £1,000 in interest a-year tax-free, while higher-rate taxpayers can earn up to £500. You can read more in our How much is the Personal Savings Allowance in the UK guide.
With interest rates on the rise, it now takes around £20,000 in savings to hit the PSA limit if you’re a basic taxpayer. If you’re getting close to that limit, it could be worth looking into a cash ISA, as the interest you earn on these is always tax-free (and doesn’t count towards your PSA). Read more about tax efficient ways to save with an ISA in our guide.
No strings attached
But let’s get back to easy access savings accounts and their big appeal. With a Hodge Easy Access savings account, it really is no tie-in, no penalties, no strings attached. We want savings to be a simple and straightforward way to grow your money while keeping it safe and accessible.
Remember to always check the account terms for access limits or restrictions when opening one or multiple savings accounts.
How to choose the right flexible savings account
Whether you’re saving for something important - whether it’s big, small or something in between – the account you choose can make a real difference. And while of course interest rates matter, it’s not just about chasing the highest number. It’s about finding a savings account to help you reach your goals in a way that works for you. Easy access savings accounts can be a great way to save with flexibility, growing your money and keeping it within reach. Here are a few things to consider when deciding if a flexible savings account is right for you:
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What are you saving for and when will you need it?
If you’ve got a shorter-term goal in mind, like a holiday, a new car or building up an emergency fund, an easy access savings account that lets you dip into your savings without penalties or delays could be the right move. If you’re considering locking away your cash savings for a few years, in a fixed term ISA or bond, you’ll need to be sure you won’t need access to that money during the term, or you could end up facing penalties or withdrawal fees.
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Do you need flexibility in how you save?
Not everyone saves the same way. Some people like to set up regular deposits each month, others top up when they can. A flexible savings account means you can save in a way that suits your income, your outgoings and your own rhythm. If your income isn’t predictable or you don’t have a lump sum to put aside in cash savings, an easy access savings account gives you the freedom to build your pot over time, with no pressure, no limits and no strings on how often you add to it.
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Will you need access in an emergency?
According to This is Money, emergency funds are on the rise, with 63% of UK households having a rainy-day fund for when the unexpected happens. Expensive car repairs, vet bills or broken boilers can all mean you may need to access your cash savings more quickly than planned.
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Would multiple accounts help segment your goals?
Using multiple easy access accounts can help you stay organised and track progress towards different savings goals. Having one or more cash savings accounts separate to your current bank accounts will not only mean you are earning savings interest, but you are keeping this money in a separate pot, making it less tempting to dip into without consideration for your financial goals.
Why are people saving?
Since the Covid pandemic hit in 2020, the ONS has reported a consistent increase in the UK’s household saving ratio. This is a measure of the percentage of household disposable income that is saved. The uncertainty of the pandemic likely highlighted to many people their financial insecurities. The FCA (Financial Conduct Authority) also reported their data indicates a significant increase in people opening or switching to easy access savings accounts, driven by interest rates and the desire for flexibility.
It’s understandable that for many savers, wanting to access their cash while still building a pot of money outside their current account is important for reaching goals and having peace of mind.
Benefits of saving without locking your money away
Unlike high-risk investing, where your money is tied up, cash savings can offer a safer, more stable option to grow your money. While investing may have the potential to offer higher returns, they’re also subject to market fluctuations. Regular savings accounts can offer not only returns on savings, but accessibility and are FSCS protected.
Many experts recommend saving about three months’ worth of expenditure in an easy access savings account. Once you’ve set aside some emergency funds it could then be worth looking at spreading your savings and placing some in a fixed savings account.
Choosing between different types of savings accounts
Because every saver is different, there are many savings accounts to choose from. It's a good idea to choose one that works around your lifestyle and your savings goal, not just how much interest you can earn.
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Easy access savings account
These are ideal for flexibility and accessibility. You can withdraw and add money when it suits you.
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Notice accounts
These can offer good interest rates, but you'll need to give advance notice to make withdrawals.
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Fixed term savings accounts such as ISAs or fixed rate bonds
These can offer fixed interest rates, so you know the return on your savings after the agreed term, but you will need to lock your money away for the set period.
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Traditional savings accounts
Regular savings accounts can be a great way to build up your savings and develop good savings habits
What makes a Hodge Easy Access savings account different?
We believe saving shouldn’t come with strings attached – that’s why our Easy Access savings account is built around freedom and flexibility.
A Hodge Easy Access savings account offers you:
- access to your money at any time – no penalties or reduction in interest rates if you do
- minimum deposit just £1, maximum up to £250,000
- unlimited deposits and withdrawals as long as they’re within these balance limits
- open and manage your account online at any time
- set up multiple accounts to suit your different savings goals
- competitive interest rates to help your money grow
- FSCS protection so your savings are safe and secure up to £85,000
Having an emergency fund to fall back on can help you avoid taking out loans or putting expenses on a credit card – which could mean paying even more in the long run. An easy access savings account means your money is always working for you, but still there when you need it.
Find out more about our Hodge savings accounts.
Backed by FSCS and trusted for decades
The FSCS ensures the first £85,000 you save with an authorised bank or building society, like Hodge, is protected. It’s important to note the £85,000 is per UK-regulated financial institution, not per account.
For joint accounts, each account holder is protected up to £85,000, meaning a total of £170,000 could be claimed. If you have an individual account and a joint account within the same banking group, £85,000 compensation limit will apply across these accounts, not to each separate account.
This protection isn’t just for savings—it also covers mortgages, insurance, and investments if an authorised financial firm ceases trading.
For more than 60 years we’ve been a trusted and reliable bank. Our loyal customers rate us highly for NPS, satisfaction scores and trust ratings, exceeding industry averages. We pride ourselves on delivering exceptional service and doing the right thing for our customers.
Everyday financial freedom
For some savers it’s not just about setting money aside – it’s about how you can earn interest while still having the freedom to access money when you need it. That’s where the balance of everyday financial freedom and smart savings really come together.
Whatever your savings style, it’s all about finding what works for you – and being confident that your money is in the right place. Whether that’s steadily growing in a cash savings account, staying within reach for peace of mind, your financial goals are what matters most.
Explore our savings options
Whether you’re looking for flexibility or a fixed return, you might want to explore our savings range.
Take a look at our Easy Access savings accounts, Fixed Rate Bonds and Cash ISAs.
You can also sign up to our Savings newsletter for our rates, expert insights and tips on how to build better savings habits.
This article is correct at the time of publishing and for general information purposes only. We recommend you speak to a professional financial adviser for financial advice. You can find a financial adviser and further personal finance information at unbiased.co.uk.