More than half of the top 50 savings accounts signposted as ‘instant access’ actually come with a raft of strings attached, new research finds.
Just 23 of the best 50 accounts are deemed truly instant and don’t have penalties, restrictions for withdrawing money or rely on short-term bonuses to boost returns, according to analysis from investment group Investec.
Easy-access savings accounts are typically favoured for the freedom they give you to pay in and take out money as and when you need.
However, most have terms and conditions that restrict access, with 18 of the top 50 limiting the number of withdrawals customers can make.
Meanwhile, 13 charge interest penalties or reduce the rate paid to savers who exceed the number of withdrawals permitted in the terms and conditions of their accounts, the research conducted by MoneyComms finds.
Strings attached: Just 23 of the best 50 accounts are deemed truly instant and don’t have penalties
David Hunt, of Investec, says: ‘Savings accounts should be transparent and easy to use but, unfortunately too many are not plus they come with a range of terms and conditions which can be easy to overlook.
‘Customers need to always look beyond the headline interest rate and check whether there are restrictions or penalties around accessing their money or whether their deal relies on a short-term bonus.’
The average rate of leading easy-access accounts is 3.24 per cent – more than double last summer’s average.
Building societies and smaller banks announced a fresh round of interest rate increases in recent weeks, after the Bank of England pushed up the base rate to a 15-year high of 4.5 per cent.
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