Which account do you keep your emergency fund in if you have one?

[mechanicalpencil]

I am in the process of re-building up a small emergency fund(for replacing washing machine, boiler etc if anything breaks) which has been recently depleted.

Previously I have just kept it in my current account as I like the security of having a buffer and I know it’s immediately accessible. However, it seems a bit of waste to keep a couple of thousand in there on negligible interest.

I have an Isa but there is a limit on withdrawals.
I also have some premium bonds.

I was wondering what others do?

Thanks

I just have one savings account for everything, other people have several accounts.

I just moved to a different easy access ISA for a better interest rate. (I looked at fixed rates too, to put half in there and keep half in an easy access one, but their rates weren't that great.)

Martin Lewis has some useful advice on what interest rates to look for, based on whether you're a basic or higher rate tax payer.

I keep about £2 to £5k (goes up and down depending on use!) in an easy access savings account. I wouldn’t keep it in my current account as then you have to constantly disregard it when checking your balance.

Look for a high interest account, i have one that pays 6% but can only put in £150 a month, however it quickly builds up and I now have over 2K in there. It also allows me to add round ups which is about another £50 a month.

Do you get 6% on the whole balance every month or just 6% per year? I’ve never quite understood the point of accounts that offer a good rate of interest but only let you deposit tiny amounts, and think maybe I’m missing something.

I keep the rest of my savings in premium bonds as I enjoy the hope of winning big. Every now and then I look for alternatives but you never seem to actually be able to earn that much in interest.

Most in NS&I bonds and a few K in a fixed savings account for 12 months which is paying 4.5%.

Easy access saving accounts. I have 3. Firatly, different pots, but also I just don't like to have all my money in one account.
I have lloyds as main current account and 0 with them in savings because their easy access interest is simply laughable.... So don't just go for the easy option with your own bank. Look around. I have moneybox as main saving account, which while I can only withdraw once a month, is pretty ok on interest and administration

I don't think you're missing anything. It's just marketing.

If your concern is wanting instant access, ust use an easy access savings account that is either with the same bank as your current account or operates faster payments (so you can transfer across to your current account within 2 hours).

I’ve got an instant access savings account with Chip. The interest rate is fairly low - 3.5% - but there’s no limit on withdrawals and the money is transferred to my bank account pretty much instantly.

I have some in chase savings but mostly in T212 ISA after chase slashed their interest

We are very much like you OP.
Keep a significant "float" in our current account which would be immediately available if we ever had need to use it (never happened yet🤞). It does not attract interest but in the greater scheme of things, we are not worried about that.

Easy access money is in PB's, we take out for larger purchases (new car, building work etc) but would always prioritise replacing it ASAP (both have max holdings).
Long-term savings & investments (which we have no plans for) are in ISA's and shares (from company share schemes when I was working).

Easy access savings a/c. There are a range on the market but Marcus is 4.3% at the moment (interest paid monthly) which is pretty good for easy access.

I don't keep any additional money in current accounts as they are the most at risk of fraud. My personal and joint current accounts have enough in them to cover the outgoings for each month. I have standard savings accounts for holiday savings and slush fund, they attract a small amount of interest and are safer and then bonds, fixed savers and ISAs for longer term

£1k in current account, anything on top goes in PB

Look up Martin Lewis’ s Money Saving Expert website for the savings page. They have the latest best deals for notice accounts, fixed rate and variable accounts, as well as instant access. Raisin bank also have a lot of deals from different banks. Sharia bank accounts also tend to have good deals.

We just use our normal current account, it all comes out of the same place.

I have an overdraft that can be used for small emergency purchases until I get my savings if needed. Then I keep a small amount in a Monzo easy access. Everything else is kept in other savers with varying degrees of access but plenty of float for a few days if needed

For emergency fund money I don't sweat the interest rate. I put it in premium bonds, because if I do win the money is tax free and won't cause tax admin! It's instantly accessible. I'm happy for the money to be held by the government so it can benefit society as a whole.

I'm more astute about long term savings and investments and put more energy into them.

I view an emergency fund as an insurance and providing peace of mind, which has a value greater than stressing about maximising returns. But each to their own.

Thank you everyone for sharing, lots of great suggestions here for me to look into !

Marcus accounts currently offer 4.3% interest. They’re a great place to keep money that you probably won’t use but want to be able to access immediately if needed.

Monzo savings pots are are 3.5%. Again, easily accessed and not locked away.

Starling have recently started an easy saver account which pays 4%pa, paid monthly. You can transfer to your current account in seconds via the app. You have to have a current account with Starling, to have an easy saver.

£5k in a Barclays Rainy Day saver account. Pays 5% up to £5k and as DH & I are both Barclays current account holders, it’s accessible in a couple of minutes.

I have spare cash in an easy access savings account I could transfer to my current account straight away that gets reasonable interest. I use that for rainy day emergencies and storing next years ISA funds so try to get it up £20k by the end of each year then start again once I can stick it in my ISA.

I have about £4k in and ISA, some in premium bonds and some in numerous Monzo pots, plus a few hundred in an investment account with Monzo. I like to spread my savings out for different things.

I don't save a lot as I have a huge mortgage that I'm trying to pay down and whilst I know that I can always earn slightly more by saving what I'm overpaying and paying it off at the end, I prefer to have my mortgage balance going down. And it stops me being tempted not to save it!

An e saver. It can be moved into my current account in 24 hours if needed