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While this is a high rate, there are accounts with higher rates of interest for smaller amounts of money: • Virigin Money offer 5.02% on their current account (on balances up to 1k) • Natwest offers 3% (Regular savers account) • Nationwide offers 2.5% (Regular savers account)
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Some fixed savings accounts offer similar rates but honestly, I think it's better to have some flexibility rather than locking your money away
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If it were me, I would focus on getting part of my savings into accounts with these higher rates (what I'm currently doing) and then have the rest sit in an account with the highest interest rate savings account that is both a easy access account and is also covered under FSCS
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