Tricks Banks Use to Lure You to Their Savings Account
Bank accounts which are known to have the easiest access to have now set a limit to the number of times one can take out money. And the limit is down to just once a year. This is due to base rate being seen to stay low at 0.5 percent into the future.
This news has prompted experts into warning savers about the details and particulars of banks’ savings accounts before they pen their signatures onto the contracts.
“Marketing tactics are rife. Savers need to look carefully at terms and conditions,” said Sue Hannums who works with website, Savingschampion.
“Some so-called access accounts are incredibility restrictive. You might be better locking up some of your money in a fixed-rate deal for a higher rate,” she added.
Also giving his advice is Louise Holmes of Moneyfacts who says, “It’s vital that savers check an account’s small print. Some carry restrictions for accessing cash, and failure to adhere can result in hefty penalties, such as loss of interest, which would ruin any hopes of a decent return”.
Here are some of the schemes that banks use.
- MySave Online Plus- it has a top rate of 2.53 percent after tax is charged. The previous tax rate was 3.17 on 27,000 euros and more. For smaller sums, the tax is down to 2.28 percent from 2.85 percent previously.There is a bonus payable included in the rates for the first year; however, this drops to 1.21 percent from 1.51 percent. But account holders are reminded that they are only allowed to make one withdrawal each year; otherwise, the bonus will be lost in the month the withdrawal is made. Moreover, the interest rates become lower from 0.1 percent to 0.08 percent.
- Barclays e-savings Reward- For every month the account holder does not withdraw money, 1 percent (previously 1.25 percent) is earned. But if a withdrawal was done, only 0.68 percent (previously 0.85 percent) will be earned. Moreover, 0.6 (previously 0.75) point bonus will be awarded on the first year.
- West Bromwich BS WeBSave 2- This pays 2.05 percent but is proud to have online access. However, same as the ones above, it only allows the account holder to withdraw only once a year. And when more withdrawals are made, three months worth of interest will be lost making only 1.54 percent from 1.92 percent interest rate.Another tactic that it uses is to set a limit on the amount of money that may be deposited into the account. Otherwise, the loyal savers may be penalized.
- Leeds BS Diamond Saver gives a very attractive interest rate of 2.12 percent, previously 2.65 percent. This also includes a bonus of 0.48 percent, previously 0.6 percent points. However, the offer lasts only until May 31st of next year. The catch is, until such time, unlimited access to the money is allowed.
- Norwich and Peterborough Branch Saver pays out 1.8 percent, previously 2.25 percent, on each euro.
If Need for Money is Urgent, then Avail Cash Advance
With the rates and terms that are set by banks in their savings accounts, the limit to the number of withdrawals per year also limits solution to the problem. So if the need for money is urgent, then avail Cash Advance. It is Australia’s number one site for payday cash loans. All the borrower needs is to be aged 18 years and over, with an active checking account and a job to pay off the debt.
Source : THISISMONEY