Moneyfacts warns of instant access perils
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.