Excessive withdrawals lead to charges with some savings accounts

People who make an “excessive” amount of withdrawals from their instant access savings accounts will incur charges from their bank, it has been reported.

According to research by Nationwide in March, 84 per cent of people think that it is very important that their bank does not charge them for withdrawing from their savings.

However, Moneyfacts.co.uk analyst Michelle Slade explained that the reason that banks offer such a high interest rate is they believe they will be looking after this money for a “serious” period of time.

She added: “If people are going to use it as a current account and dip in and out of their money, the bank is not expecting you to do that sort of thing, so there is going to be some sort of penalty if you are going to make an excessive number of withdrawals.”

Moneyfacts.co.uk found that the majority of instant access and no-notice accounts allow savers to access their money as and when they want it.

© Adfero Ltd

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