More providers are attaching terms and conditions to instant access savings accounts, an expert has claimed.
This is bad news for savers, as traditionally many are willing to accept a lower rate of interest in exchange for instant access to savings, stated Rachel Thrussel, head of savings at Moneyfacts.
Incurring a penalty for making withdrawals on instant access savings accounts is a "contradiction in terms", the analyst asserted, with many providers deducting interest when borrowers make withdrawals.
Ms Thrussel stated that customers need a simple product, with no caveats or penalties.
"Consumers should avoid choosing an account just based on its headline interest rate," she said.
"It is much better to set out their needs first, whether it be the notice term, where the interest is payable or how the money can be accessed, then choose the best interest paying account from these."
Legal & General recently released research which showed that UK residents are increasingly looking to make savings in 2006, which could see further improvement if the Bank of England opts to raise interest rates late in the year.
Savings accounts changing, expert claims
Financial Services > e-banking > Banking news
Savings accounts changing, expert claims
Wed, 11 Oct 2006
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