Interest rates could drop once bonuses on savings accounts have expired, warns Sainsbury's Bank.
The average return on no-notice savings accounts with introductory bonuses is 4.23 per cent with a balance of £1000, according to the bank.
However, the average interest on savings accounts falls to 3.6 per cent once the bonuses expire.
Sainsbury's Bank has urged savers to make sure their savings account gives consistent returns on the investment.
Peter Wood, director of savings at Sainsbury’s Bank, said: "There is nothing wrong with short-term bonuses as long as savers are aware of them and have taken into account what their long-term interest rate will be.
"However, it’s easy to be drawn by an attractive rate so we’d urge savers to consider their returns beyond the point when a bonus expires."
The research also states that 11.05 per cent of no-notice accounts pay bonuses, which may expire, while a further 16.98 per cent apply penalties for making withdrawals by cutting rates.
Sainbury's Bank offers several savings accounts, including an online savings account and a fixed-rate savings account.
Sainsbury's gives warning over savings accounts
Sainsbury's gives warning over savings accounts
Wed, 14 Jun 2006
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