Are you getting the most from your rainy day fund?

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It’s a good idea to keep money aside for an emergency or unexpected bill. But keeping your rainy day fund in a current account could mean losing out on interest every month.

What is a rainy day fund?

A rainy day fund is money put aside to cover a sudden bill or expense. It is also called an emergency fund. You’ll want to be able to access this money easy, so you can pay for any bills that come up.

Is your rainy day fund in the right place?

Many people keep their rainy day fund in a low-interest account (like a current account). Current accounts often have low rates of interest and are used for everyday banking. 
According to research from CACI in 2023, in the UK there is current £350 billion sat in accounts that pay less than 1% interest. This means a lot of people aren’t earning extra interest on their money due to where it’s been put. 
Moving money into a savings account that you can access easily means that you earn interest while keeping your cash close at hand.

What are your saving options?

If you have a lump sum in a current account, an easy access account may be a way to save while being able to earn interest and withdraw money when you need it.

What is an easy access account?

An easy access account is a type of savings account that you can open with a small amount of money. You can save a lump sum or each month. There may be a limit on how much you can save each month and how often you can withdraw money.

Other accounts, like fixed rate bonds, don’t let you access your money for a set period of time.

Benefits of easy access accounts

  • Can have less restrictions than fixed rate accounts.
  • Can be set up with small amounts of money.
  • Generally better rates of interest than a current account.


  • Easy access accounts can have limits on how many times you can withdraw money. Check this before opening one.
  • There may be a wait before you can withdraw.
  • There may be a limit on how much you can withdraw.

Getting into habit of saving

If you’re not used to saving often, it can be tricky to get into a routine. Try our saving tips:
  • Pay your savings in on payday – this way you aren’t tempted to spend it.
  • Only save what you can afford – be realistic! You can start small then grow from there.
  • Look for new ways to savebuying at the right time or making changes with your spending could give you more spare cash to put away.

Looking for an easy access savings account?

The content on this page is for reference and is not financial advice.
For impartial financial guidance, try MoneyHelper.