Best saving account to start an emergency fund ?

[MinstrelMum]

Looking to transfer £200 a month with a £500 initial deposit.

Looking for a high interest rate… any recommendations?

Tesco

Which one? There is quite a few? Xx

I have the Internet Saver but depends whether you want to have access to your money as and when?

Check moneysavingexpert - you'll find the best rates on there

Look at Chase online bank

Check your own bank first; sometimes they offer a special rate. The Santander Edge current account offers for eg a special Edge saver with a 7% rate (up to a max of 4K). Then check moneysavingexpert.com to see what rates are available. Note that many regular savings will only allow your initial deposit to be same amount as the monthly fixed (eg £200/month).

I opened a First Direct regular saver account recently which pays 7% on up to £300 per month for a year. Needs you to open a First Direct current account too if you don't have one. I have an instant access Tandem account at 4.9% for money that I can transfer to my current account when needed.

Martin Lewis email has the best rates every week, no need to do the work when he does it for you 😀

Chase, great instant access saver

If you haven't subscribed to an ISA consider using your allowance there first.

I’m with Chip - 4.84% interest.

I tend to check MSE for the best rates. Sounds like a regular saver is the way to go, if you are with First Direct/ Co op or Skipton you could get 7% interest.

I do rate Chip though, I have their 5.1% Cash ISA. Easy access if you need to withdraw.

I opened a chase current account and saver account, and now have booster account for savings and I find them very good. I've been a Halifax customer for many years but the app keeps going down (at the most inconvenient times) hence me sourcing a new bank.. rates are good and service faultless.

I have my emergency fund in premium bonds, it's only a couple of working days to access the cash and have the fun of winning prizes (some months!) in lieu of interest

@rockingbird . I'm an accounts nerd and have current accounts with most financial institutions mainly due to switching offers. I love Chase, they are absolutely my favourite bank.

The app works so much better than all other banks. Decent cashback on spends and good interest rates. I love receiving instant push notifications of money in and out of all of my accounts, Halifax's notifications are the next best but can be delayed by hours if there is a glitch and Santander will only advise of amounts above £100 and are only sent by text at 10am.

Chase has notifications of upcoming DDs and SOs going out the following day, I can double check the amount is right / dispute it if not and make sure there's enough in the account to cover it. I like that I can set standing orders to be sent from Chase on a weekend, seems trivial but I send DDs pocket money on the 1st, I'd like them to have it then, not the following Monday.

The best choice for you will depend on several things, including whether you need unlimited and instant access or whether the option to dip into your emergency savings 3 or 4 times a year will be fine. Do you want to be able to go into a branch or just transfer money in and out of account(s) online or by phone banking?

Regular savers offer some of the highest rates in many banks and building societies etc, but usually you can only save a certain amount a month and there are other conditions. You could open another savings account to put your initial £500 in, then start a Regular Saver for your £200/month at a higher rate. A lot of Regular Savers run for 12 months, so you can then transfer your savings including the year's interest to the same account as your £500. Or you can open a cash ISA if you haven't already used your £20K annual allowance and keep the £500 initial amount plus monthly payments together and get interest tax free. Rates aren't as high as many Regular Savers.

If you're a basic rate tax payer you can earn £1,000 per annum in interest before you pay tax on it - the interest is now paid without tax at time of payment but if you're liable for tax you will have to sort out paying it. Higher rate taxpayers have a lower allowance and pay more tax, and top rate tax payers don't get a savings interest allowance.

I have a number of savings accounts with the Nationwide and Coventry Building Societies, with some money on instant access and some money that I intend to save for 18 months to a few years (I expect to have to use most of it to contribute to their costs when my kids go to university - DS1's A levels are next year - they also have some savings accounts opened for them by family). There are accounts with higher rates of interest but they all have slightly different terms and conditions. For an emergency fund account I think accessibility is important, and also what happens to your headline interest rate if you need to take money out.