Don’t rely on headline savings rate, warns bank

Consumers should be aware of not relying too heavily on the headline rate when choosing a savings account, it has been claimed.

Jason Clarke, spokesperson for Halifax, warned that this rate does not give all the information needed to make an informed decision.

“Don’t just go on the headline rate because it isn’t going to tell you how you are going to get access to it and what the limits to the account are,” he said.

Mr Clarke explained that often the most attractive-looking rates have the most limitations such as available withdrawal amounts and accessibility, while they are often fixed-term products.

With these, savers would not be able to access their funds for a certain length of time such as six months or two years, he added, claiming that some products also do not allow people to use cash machines to withdraw money from them.

Last year, more savings were put away in building society accounts than ever, reports the Buildings Society Association, claiming that the £16.1 billion is almost double the inflow of the previous year.

© Adfero Ltd

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