Anyone who opts for an instant access savings account might find that it comes with strings attached, one expert has warned.
Michelle Slade, analyst at Moneyfacts.co.uk, explained that while such savings accounts offer people immediate access to their money, they often face penalties if they choose to do so.
She said: "On almost a quarter of accounts there are some strings to be wary of when making withdrawals.
"Some accounts either reduce or pay no interest in the month a withdrawal is made, while others allow only a set number of withdrawals a year."
Ms Slade added that if people wanted to make regular withdrawals from their savings accounts, they could end up losing hundreds of pounds worth of interest.
Last week, Kevin Mountford, head of savings at Moneysupermarket.com stated that banks are keen to attract more customers and because of this are offering good rates on their savings accounts.
Warning over instant access savings accounts
Warning over instant access savings accounts
Mon, 21 Apr 2008
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