Saving with confidence can be tricky. Putting money away only to withdraw it a few days later might require a more flexible type of savings account. While there are savings accounts out there that fit the bill, such as easy access savings and easy access ISAs, these accounts are not as rewarding as more limited access savings accounts.
Limited access savings accounts, such as our Reward ISAs, allow account holders to benefit from higher interest rates provided they don’t exceed the withdrawal limitations on their account. Account holders are able to access their money as many times as they need or want to throughout the year, but they will be rewarded with a higher rate of interest if they only dip into their savings the designated amount of times – with Aldermore’s Reward ISAs, this is once or twice.
To help you decide, we’ve put together this list of benefits of saving into a more restricted account type, here.
While reward ISAs are also subject to variable interest rates, the amount they return for savers is often higher than that of a more open ISA. This means that, as long as you store and keep money within a reward ISA without accessing it more than permitted, you can enjoy a larger return on your savings.
Even the most diligent of savers could do with some financial encouragement from time to time. Working within the restrictions of a limited access account is a great way to make a more conscious effort with your savings. This is especially useful if you sometimes struggle with impulse buying, as the limited number of withdrawals at higher rates can encourage you to think twice before spending.
If you’re approaching the maximum sum you can put in a traditional savings account, you may wish to explore alternative options that will provide a more tax-efficient method of saving. For many, this means opening an ISA.
This way, existing savings accounts continue to earn interest, while you expand your savings by putting subsequent funds into a tax-free ISA. This minimises the amount of tax paid on interest, while still providing a good return.
With long-term saving, users typically opt for accounts that give the highest return to make the most of the higher-than-average sums placed within the account.
Reward ISAs are particularly advantageous in this regard, as they provide higher interest rates for those who don’t withdraw as often as they usually would from a traditional savings account.
Everyone should have an emergency fund. They’re essential for dealing with life’s unexpected moments. Sometimes, these moments can be dealt with relatively quickly, such as replacing a broken piece of tech.
However, sometimes, larger costs can descend with little to no notice. This calls for higher amounts of savings to cope. Growing an emergency fund takes time but utilising higher interest rates in your savings account can help you grow them quicker.
The beauty of reward ISAs is that, while they do have a higher interest rate, withdrawals can still be made for the biggest emergencies. This allows you to build up that emergency pot during the rest of the year, ready for when it’s truly needed.
If, for example, you can confidently place money away for a long time knowing that you won’t need it, a reward ISA would be a good fit. With these types of accounts, savers are limited around how often they can withdraw money from the account but can enjoy a higher interest rate.
Products like our single access or double access reward ISAs permit either one or two withdrawals with no reduction in interest rate. This makes them a great fit for confident savers.
In a similar vein, if you have a large sum of money to put into savings, the high interest rate of a reward ISA will be particularly attractive. This allows account holders to achieve the absolute maximum returns for their money, provided they don’t infringe on the limitations.
Our goal is to ensure that you maximise the potential of your finances. With our Reward ISAs, we’re making it easier to build emergency funds to ensure minimal interruption to your finances in moments of need.
Want more from your money? With the Aldermore Reward Cash ISA, you get the best of both worlds – a competitive interest rate of up to 4.4% AER variable* and flexible access when you need it.
*Rates as of 05 March 2025. If you withdraw twice or more for single access, or three times or more for double access in an anniversary year, then the rate will reduce to 2.90% AER. T&Cs apply.