Sylvia Morris

Easy access savings accounts: beware the hype

Easy access accounts are getting increasingly complicated. Savers are required to trawl through a host of terms and conditions to see how and when they can get their hands on their money, or if their rate will plummet after 12 months.

Investec Bank research shows that of the top 20 easy access accounts ranked by the rate paid, only six come without withdrawal restrictions, penalties if you make more than the allocated number of withdrawals, or a short-term bonus where the rate plummets after 12 months.

Easy-access savings account rates cut

At its latest meeting at the start of November, the Bank of England Monetary Policy Committee left the base rate unchanged at 0.75%. But that has not stopped providers chipping away at the rates they pay savers.

Savers stung by stealth rate cuts

Banks and building societies are busy cutting the rates that they pay savers. The falls impact easy-access accounts offered to new savers, as well as those that were on sale in the past. Thousands of savers are currently earning a pittance on cash languishing in more than 1,400 easy-access accounts, which are closed to new savers.