Savers 'need to do their research when choosing an account'

By Sarah Engle, Thu 3 Jul 2008 - Published in Banking

People who intend to compare money-saving deals need to be aware of the restrictions that come with some high-interest accounts, Sainsbury's Finance has warned.

Head of savings Helen Cook commented: "There's no such thing as a free lunch."

She added when comparing the top 50 deals there are lots of tempting rates of interest available but when you take into consideration how you will be using your account "the choice becomes much slimmer".

Sainsbury's Finance and Defaqto looked at the top 50 easy-access savings accounts on balances of Ł1,000.

Their research revealed 12 accounts limited the number of withdrawals that could be made, four penalised savers for taking money out and nine were only available to adults of a certain age.

Meanwhile, figures from the British Bankers' Association for May showed mortgage lending was weaker than in April, consumer credit rose reportedly as a result of lower credit card repayments and less savings were deposited than in the previous month.

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