Savers should 'shop around for the best account'

Wed 9 Jul 2008 - Published in Banking

People need to compare money-saving deals before choosing an account, according to Sainsbury's Finance.

Helen Cook, head of savings, said where some accounts are concerned there is a trade-off between instant access and good rates.

She added that when choosing an account savers need to bear in mind the possibility they might end up sticking with the same provider for many years.

Ms Cook stated: "Even though you think you're going to be very sensible and shift amongst rates, actually most people don't."

Research carried out by Sainsbury's Finance and Defaqto revealed that 26 out of the top 50 easy access accounts had certain conditions attached.

They found 12 accounts restrict the number of withdrawals a saver can make, four apply a penalty for taking money out and nine are only available to people within a certain age group.

Figures from the British Bankers' Association released in June showed lower credit card repayments in May resulted in a rise in consumer debt.

There was also a drop in the amount of money deposited in savings accounts.

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