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

Moneyfacts warns of instant access perils

Written by:

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, 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.

Related Posts


Tag Box

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

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...