Savers looking for unrestricted access to their cash should be wary of so-called easy- access accounts that are nothing of the sort.
These are often treated in best buys lists as ‘easy access’ but restrict how often you can make withdrawals.
The latest issue of Paragon Bank’s Double Access account pays a near-top rate of 5.25 pc. Virgin Money, Aldermore Bank plus Scottish, Principality, Newcastle, Skipton, Chorley and Yorkshire building societies recently launched new easy-access accounts with restrictions or upped rates on existing ones.
Several tempt savers with rates of 5 pc plus. But there are easy-access accounts with identical or better rates with no restrictions.
For example, Coventry Building Society Triple Access pays 5.2 pc and allows just three withdrawals a year. This pays £520 interest on each £10,000. But Ulster Loyalty Saver pays the same rate with no limits on withdrawals.
Savers looking for unrestricted access to their cash should be wary of so-called easy- access accounts that are nothing of the sort
Easy-access accounts tend to be the most popular as they will allow access in an emergency.
By calling restricted accounts ‘easy access’, providers attract a lot of savers and appear in best-buys lists. But the accounts come with many terms and conditions. You need to be organised so you don’t take money out more often than allowed. If you do, you earn a lower rate — as little as 1.5 pc or 2 pc — for the rest of the year.
Restricted easy-access accounts differ in the number of withdrawals allowed.
Some stipulate a calendar year. Others start when you open the account and run for 12 months.
The Virgin Money Defined Access Saver (at 5.12 pc with a maximum of three withdrawals) and others, including the Principality Online Double Access (4.85 pc with two withdrawals), run from January to December.
Paragon Double Access (5.25 pc), Skipton Single Access (5.15 pc with one withdrawal), Coventry BS Triple Access (5.2 pc with three withdrawals) and Scottish BS Saver Plus (5 pc and three withdrawals) operate on a rolling 12 months from when the account was opened.
Yorkshire Building Society Loyalty Six Access Saver 2023 (at 5.1 pc) allows unlimited withdrawals, but only on six days a year. It is only open to members of at least 12 months standing. The society’s Rainy Day Saver — at 5 pc on up to £10,000 — is open to all and lets you make as many withdrawals as you want but only on two days a year.
The Virgin Money Defined Access rate drops from 5.12 pc to just 2 pc if you take money out more often than the allowed three withdrawals in a year.
Paragon Double Access drops from 5.25 pc to 1.5 pc if you withdraw more than twice. The starting point is the opening date.
With Coventry BS’s Triple Access you pay a fee of 50 days’ interest on any withdrawals made over the permitted three.
This will cost you £7.12 to take out £1,000 which effectively drops your interest from 5.2 pc to 4.49 pc on this slice of cash.
Top easy-access rates without withdrawal restrictions include Ulster Bank Loyalty Saver (5.2 pc), Shawbrook Bank (5.11 pc), Secure Trust and Close Brothers (5.1 pc), Hampshire Trust (5.09 pc), Charter Savings Bank (5.07 pc), Kent Reliance (5.06 pc) and Family BS (5.04 pc).
Kevin Mountford, of savings platform Raisin, says: ‘Providers are using these accounts to attract customers, hoping they’ll stay when rates fall.’ Experts say rates could fall next year.
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