Really good rates on offer to savers

There are a variety of options open to people looking to put money aside in savings accounts, but consumers should be aware of cashing their accounts in too early, one expert has claimed.

According to Helen Howcroft, spokesperson for independent financial advisory firm Equanimity, there are a number of accounts that enable consumers to access their savings easily, such as individual savings accounts (Isas).

However, cashing in their accounts early may mean that a consumer does not receive the full benefits of having saved in such an account, Ms Howcroft stated.

“If it’s invested into something like a stock and shares Isa and you cash your money in during the early years you run the risk of it being worth less than what you actually paid in,” she warned.

There are a number of bank accounts now available on the market that offer “really good” rates of interest but do not allow the holder to take out their money for at least 12 months, she added.

The Treasury recently announced a package of reforms intended to make Isas more attractive to savers by making the system simpler and more flexible.

© Adfero Ltd

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