Hidden savings costs revealed

Easy access savings accounts can hold hidden charges for savers wishing to take out any of their money, it has emerged.

Consumers are urged to look at the small print of a savings deposit before entrusting their cash and laying themselves open to punitive measures, said Kevin Mountford, head of savings at moneysupermarket.com.

He commented: “It’s clear that some of these accounts deserve their place in the ‘easy access’ sector, but others should perhaps be categorised as ‘new notice accounts’.

“They do have a part to play in the market, but they are very much aimed at more disciplined savers. We know from experience that savers are different and save for different reasons.”

Mr Mountford added that savers should consider the details beyond the advertised rate and make sure they truly understand what they are signing up for.

Research from the website found that just four in ten of the highest interest-paying accounts give savers the chance to have unlimited access to their cash without losing any interest.