Starling or YBS Internet saver for emergency funds?

Legacy_user

I’m building an EF account, which is currently with Starling which offers 0.5 for balances. I like the fact that as an ‘emergency account’ , it can be used anywhere (so not just a cash card for ATM withdrawals) and I can also use it abroad for free as a back up to the holiday cash I’ve taken. However, I’ve also come across the YBS Internet Saver account which only comes with a cash card, however, offers 0.75 for balances. Whilst the interest is higher, I’m concerned that it’s just a cash card (£250 limit withdrawal per day). What do others think and how /where do you put your emergency funds? I’m aware that I can also use regular savers which offer a higher interest, but I’m debating this -and while I have a few regular savers I didn’t set them up with EF in mind , although that can change, I currently have one at 2.25 which is an easy access regular saver, but again I would have to transfer money across if needed and it matures after a year. I can help but thing that having one that works and can be used in any instance is better? What do you think? Debit card, cash card, easy access regular saver, or limited access ? I have one that you can withdraw from easily but only twice a year.

hangonthebox

Don't forget that you also have internet banking with a YBS Internet Saver so you can easily transfer funds out at any time. You could open both and then just transfer from YBS to Starling when you wanted to spend some savings.

colsten

Why not use a current account? Such as the 5% TSB Plus? Or 3% Tesco?

pafpcg

colsten wrote: »

Why not use a current account? Such as the 5% TSB Plus? Or 3% Tesco?

Or Nationwide FlexDirect current account at 5% for the first year then 1%;
or 1.5% at ClubLloyds and Bank of Scotland current accounts;
or 1.5% in a SavingsBuilder at Natwest (if you can handle the account maintenance);
(or an internet-based regular savings account which allows withdrawals and doesn't have minimum deposit requirements, but unlike the above accounts, won't give access to cash at an ATM with a debit card. And you've got the need to renew them every year).

One thing to be aware of with the YorkshireBS internet accounts is that withdrawn funds don't arrive in the receiving account until the following working day which might be an issue for an "emergency fund".