Savers trying to find a safe location for their cash face a raft of charges, limitations and teaser rates
, research performed on behalf of The Mail on Sunday reveals.
Of the top 50 instant gain access to cost savings accounts, over half are not uncomplicated
Sixteen limitation the variety of withdrawals savers can make while eight are only available to certain age– or to people who currently hold a bank account with the provider. The analysis, performed for the banking group Investec by Andrew Hagger of MoneyComms, likewise found that seven of the top 50 easy gain access to savings accounts have short-term bonus offers.
Short-changed: Of the leading 50 immediate gain access to cost savings accounts, more than half are not simple.
Perks are 0.34 per cent and last usually for just over 11 months. Short-term rewards– likewise known as teaser rates– lure savers in with a general competitive rate, which then drops after a few months.
If savers do not keep in mind to move their cash when it ends, they can end up even worse off than if they had picked a lower rate from the beginning. Linda Brown, head of savings at Investec, states: ‘When selecting a savings account you ought to seek to see if a short-term benefit is being used to inflate the interest rate.’
The research took a look at the top simple gain access to represent balances of ₤ 5,000. Easy gain access to cost savings rates are presently so low that there are just 3 that beat inflation, according to monetary data scrutineer Moneyfacts. All three have constraints. ICICI Bank UK pays 0.75 percent, but it is just available to new or existing HomeVantage current account clients.
Furness Structure Society’s Trainee Account pays 0.75 percent, however can only be opened by full-time trainees.
Harpenden Building Society’s 21 Club account likewise pays 0.75 per cent, however is only offered to savers aged 18 to 21.