Savers beware linked accounts
Savers opening high-interest accounts should bear in mind that any offer could be subject to a poorer value product being opened at the same time, according to Moneysupermarket.
Kevin Mountford, head of savings at Moneysupermarket, said the number of linked savings accounts currently on the market is greater than ever. They tend to offer a market-leading account on the basis that the customer takes on another product with the same provider.
For example, Abbey’s Super ISA and Super Saver are only available to customers that also invest the same amount in its Guaranteed Growth Plan investment product. Similarly, anyone taking out a Lloyds TSB Fixed Rate Cash ISA must open a Scottish Widows Investment ISA.
According to Moneysupermarket’s research, Alliance & Leicester’s Premier Regular Saver offers a whopping 12%, but only in conjunction with its current account that pays 1.5%. In contrast, A&L’s best current account pays 8.5%.
Mountford continued: “Linked accounts can offer good value, but it is important that people look at the package as a whole rather than just being seduced by the lead offer. More than ever, consumers need to check the terms and conditions of any new deal as I expect more of this cross-selling to occur.”