You are here: Home - Saving & Banking - News -

Moneyfacts warns of instant access perils

0
Written by:
21/04/2008

Comparison site Moneyfacts says savers should be aware of the terms and conditions of instant access accounts as withdrawals may come at a price.

Michelle Slade, analyst at Moneyfacts.co.uk, said: “Most instant access and no notice accounts allow you to access your money as and when you want it. But on almost a quarter of accounts there are some strings to be wary of when making withdrawals.

“Some accounts either reduce or pay no interest in the month a withdrawal is made, while others allow only a set number of withdrawals a year. One lender, Leeds Building Society, will actually close your account if you make more than two withdrawals each year on its Premium Access and Postal Max accounts.

“Some of these accounts pay competitive rates, but just by making a few withdrawals a year, you could lose out on hundreds of pounds of interest. The Britannia Building Society Homesaver is aimed at those looking to save a deposit to buy a house. If you needed to access your money and made five withdrawals a year on a balance of £10,000, you would have lost £563 in interest.”

Slade urges savers to make sure they check the terms and conditions before signing up for any account, warning them to ensure the account thoroughly suits their needs, otherwise they could see themselves substantially out of pocket just for accessing their own money.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Investors choose oil and banking

AIM-listed oil and gas explorer Empyrean Energy and US oil group Nighthawk attracted strong investor interest this week, according to...

Close