Now, savers must navigate a swathe of restrictions in accounts’ terms and conditions. Just 40pc of the top 50 accounts come without some form of restriction, according to research by Investec, a bank, and MoneyComms, an analyst. These conditions can allow deals to appear competitive while limiting savers’ options.
Nineteen of the 50 best-paying accounts now limit the number of withdrawals customers can make, while eight charge interest penalties or reduce the rate paid to savers who make more withdrawals than their accounts allow.
Eight don’t allow any further withdrawals for the year once a maximum permitted number has been reached and nine deals carry restrictions on who can open them, such as a requirement that the customer also have a current account with the provider. Just five of the top 10 accounts come without any restrictive small print, the research found.
Three of the best-buy savings accounts rely on a bonus, averaging 0.15pc, to inflate returns for a limited time. This is one fewer than last year, when four of the top 50 accounts relied on bonuses, which averaged 0.26pc.
Andrew Hagger of MoneyComms said: “It’s not right that savers have to wade through the T&Cs before discovering that what they think is a great deal is marred by restrictions. Most customers just want a simple account they can pay into and withdraw from whenever they like – a no-strings everyday savings account.”
The average amount held in easy-access accounts is £11,696, according to Paragon, a bank. For many savers, inflation at its current rate would eat hundreds of pounds of this away over 12 months and those who have stayed loyal to high street banks will in some cases be earning just 10p a month in interest.
Some of the biggest banks and building societies, including Lloyds, Halifax and Nationwide, still offer just 0.01pc on easy-access savings accounts, although NatWest, RBS and Santander increased the rate on their easy-access accounts from 0.01pc to 0.1pc following the Bank of England’s Bank Rate rise earlier this month.
