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Not so easy access

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Written by:
20/11/2007

Savers should be aware that 6 of the top 10 easy access savings accounts carry penalties for fund withdrawals, according to Moneysupermarket.
Recent research from the financial comparison site showed only 4 of the 10 highest interest paying accounts allow savers unlimited access to their funds without any loss of interest.

Kevin Mountford, head of savings at Moneysupermarket, advised savers to check the terms and conditions of their chosen account before depositing their savings.

He added: “It’s clear that some of these accounts deserve their place in the ‘easy access’ sector, but others should perhaps be categorised as ‘new notice accounts’. They do have a part to play in the market, but they are very much aimed at more disciplined savers. We know from experience that savers are different and save for different reasons.

“While it is recognised that providers want to be more transparent, it is easy to be cynical about these ‘new notice accounts’. Many savers have every intention of leaving their money untouched, but the reality is that they may dip in for unforeseen circumstances without a second thought. That loss of interest is where providers start to recover the margins they lose by offering strong headline rates.”

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