Consumers warned not to take rates ‘at face value’
February 12, 2008 by admin
Filed under News, News-Banking
Consumers looking for savings accounts need to be wary of taking the headline rate at face value, one financial expert has claimed.
According to the Halifax bank, the headline rate does not give you all the information you require as it does not tell the consumer how to access it and what the limits to the account are.
Jason Clarke, spokesperson for Halifax, said: “The highest rates are going to be the ones with quite a few limitations in there”, citing withdrawals not being allowed through ATMs or taking place over a certain amount of time.
He added that those consumers who are looking for a savings account should decide what it is they want from their savings before committing to an account.
According to findings from the Buildings Society Association (BSA), building societies attracted a record £16.1 billion of savings inflows in 2007, almost double the amount saved with them during 2006.
The BSA revealed that the previous record was in 1988, when £13.6 billion was deposited following in the wake of the stock market crash of October 1987.
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