"Savings account" covers products that behave quite differently from each other. Knowing which type you're looking at — easy access, notice, or fixed-term — matters more than chasing the single highest headline rate, because the wrong type for your situation can cost you in flexibility even if the rate looks attractive.
Easy access
You can withdraw money whenever you like, usually with no penalty. In exchange, rates tend to sit lower than notice or fixed-term accounts. This is the right home for an emergency fund or a sinking fund — money you need to be able to reach without delay or cost.
Notice accounts
You agree to give a set period of notice — commonly 30, 60 or 90 days — before withdrawing without losing interest. Rates are typically a little higher than easy access, in exchange for that delay. These suit money you're fairly confident you won't need at short notice, but don't want fully locked away either.
Fixed-term (fixed-rate bonds)
The rate is locked for a set period — often one or two years — and early withdrawal is frequently not allowed, or comes with a real penalty. In exchange, rates are usually the highest of the three. These suit money you're confident you won't need before the term ends.
| Type | Access | Typical rate |
|---|---|---|
| Easy access | Anytime | Lowest |
| Notice account | After a notice period | Middle |
| Fixed-term | Locked until term ends | Highest |
Matching the account to the purpose
A simple rule of thumb: emergency fund and sinking funds go in easy access, since you need to be able to reach them without a delay or penalty. Money you're saving toward a goal that's a year or two away can reasonably sit in a notice account or fixed-term bond for the better rate, as long as you're confident you won't need it sooner.