Easy-access savings account

Easy-access accounts are the normal home for emergency funds because the cash is available within hours or days. They pay interest, but the rate is usually lower than fixed-term accounts or investments.

The interest may be tax-free if it falls within the Personal Savings Allowance or is held inside a Cash ISA. For most people, the key feature is liquidity, not return.

The US equivalent is usually called a high-yield savings account (HYSA). Both serve the same purpose: keeping safe cash accessible.