Savers are being tempted with enticing rates of around 5 per cent on easy-access accounts, which allow you to make deposits or withdraw your money without restriction.
But beware, as most of them are only worth holding on to for a year.
A growing number come with a 12-month bonus, which boosts the rate for a year.
After that, it falls off a cliff. You can end up with as little as 1.2 per cent, potentially costing you hundreds of pounds in interest each year.
There has been an explosion of these bonus accounts. Banks and building societies love to offer them because the high rates put them in the best -buy tables.
Hidden catch: Bonus easy-access savings accounts offer tempting rates – but after a year it normally plummets
However, once they have lured you in with a headline rate, providers then hope you won’t notice that 12 months on your return has plummeted. Then they can get away with paying you a pittance and boost their profits.
If you are tempted by these accounts, make sure you make a diary note to move your money when the bonus disappears.
Money Mail does not include bonus accounts in our best-buy tables, but we do keep you informed of what is on offer.
The latest launches come from Metro Bank with a top rate of 5.22 per cent on its Instant Access Savings account and Earl Shilton Building Society at 5.15 per cent on its Bonus One.
When the bonus vanishes this time next year, savers will find themselves with 1.65 per cent from Metro if the current rate remains unchanged and 2.1 per cent with Earl Shilton. This means that up to two-thirds of the entire rate is a bonus that lasts just a year.
Cahoot, Leeds Building Society and Skipton Building Society also offer such accounts.
Cahoot, owned by Santander, last month launched its Simple Saver Issue 2 at 5.12 per cent including a bonus.
After 12 months your money is transferred into its Savings Account where the rate is just 1.2 per cent.
If you don’t move your money when the bonus runs out, you’ll end up with £120 interest on £10,000, less than a quarter of the initial £512. Three-quarters of the rate is a temporary bonus.
Leeds Building Society last week launched issue 52 of its Limited Issue Online Access account at 5 per cent.
The account runs until January 5, 2025, when your money is moved to a different easy-access account where the rate is halved to 2.35 per cent.
Skipton Bonus Saver 9, on sale until earlier this month, offered 5.04 per cent. Once the bonus runs out after a year, the rate is 3.8 per cent.
Worse still, loyal savers who took out earlier issues of these accounts earn less than the latest headline rate, even if they are still receiving the bonus.
Savers who took out Cahoot Simple Saver Issue 1, on sale from June 12 to October 8, earn a lower 4.9 per cent and not the 5.12 per cent offered with Issue 2.
The previous issue of Skipton Bonus 8 pays 4.6 per cent, including the bonus. Older issues of the Leeds Limited Issue account pay as little as 3.5 per cent.
The High Street banks are also in on the game. Halifax Bonus Saver pays 4.1 per cent. But after 12 months your money is moved into the standard easy-access account, Instant Saver.
This pays a measly 1.45 per cent on balances up to £10,000 and 1.5 per cent on between £10,000 and £50,000. Your interest on £10,000 drops from £410 a year to just £145.
Lloyds Advantage Saver pays 4 per cent but after a year the bank moves you to its Standard Saver paying 1.4 per cent on balances up to £25,000.
Your interest will fall from £400 a year to £140 on £10,000.
Watch out too for Nationwide Triple Access Online Saver Issue 15 paying 4.25 per cent. After 12 months, your money is moved into its standard Instant Access Saver, which currently pays 2.25 per cent on up to £10,000.
