Best place for a small amount of savings for easy access.

BooJewels

Pensioner2b said:

BooJewels said:

I've just remembered a point I'd meant to make in my earlier post  I think you'd already covered it in your OP - but it's worth mentioning anyway - might benefit someone reading. 

You said about keeping funds in your bank account - you also mentioned interest too - so I suspect you're keeping the funds in a bank savings account.  But just in case you're not - don't keep substantial funds in current accounts.  Apart from missing out on interest, if someone compromises your account or steals your card, they can go on a spending spree with your hard earned pennies. I only keep what is immediately needed in the current account and modest funds to top it up in a connected bank savings account - which I can transfer in moments if needed.  If someone steals my card, they'll be very disappointed.

It gives me the willies when someone on TV talks about a scam that emptied their bank account and got tens of thousands - it's wrong for so many reasons. 

But could not the same happen with your savings accounts? And if they did, would the funds not be covered under the FSC.  However, I will be looking to move the small amount of savings I have in my bank saving account. 

@refluxer has already explained everything that I would have said.  You really don't need to move funds from bank savings accounts (other than for a better rate) - I purely meant not to to keep large balances in current accounts.  If your debit card is stolen or cloned, you don't want anyone to have a jolly time shopping at your expense.  I didn't think you personally were actually doing that, but your post made me think to mention it.

If you keep just what you need in the current account and some back up funds in a connected bank savings account to feed into the current account, as required, you'll limit what can be had if you lose your card. 

There was a case on Scam Interceptors on BBC1 this afternoon, where the scammers had visual access to the victim's phone and had already taken his debit card details. They could see he only had £300 in his current account, but 3 grand in the associated savings account.  They were trying very hard to persuade him to transfer the 3 grand to the current account as they were planning on using his debit card to buy gift cards, but couldn't get at the savings.