Interest Rates for Savers
Some savings accounts are opened at high levels of interest to attract customers but rates may be reduced within a short period of time.
Interest rates of some savings accounts, may have bonuses included and/or other conditions may be attached. Bonuses may only be available for a limited initial period.
Some accounts may have limited annual withdrawal conditions or may only be available to holders of certain existing accounts.
The above information is produced by Moneyfacts which is a comprehensive source for comparisons between savings accounts, investments and mortgages from various providers. Moneyfacts magazine is published monthly. Information is also available on-line but is limited in scope.
Building Societies Members Association (BSMA) makes no representation as to the accuracy or completeness of any of the above information and accepts no liability for any loss directly or indirectly from use or reliance on any of this information.
Best Buy Accounts (from News page – February 2003) – A survey carried out by the internet bank Egg, on the 141 bank and building society savings accounts that have appeared in “best buy” tables over the last 5 years, shows that 53 remained in the tables for less than one month and 74 for two months or less. The average life of a “best buy” account is put at 4.2 months.
Short term “bonuses” are a common method used to gain entry into best buy tables following which the interest rate drops dramatically and further notification of rate change may not be received.
Our Comment
Beware of claims made by societies on the number of times their accounts have appeared as “best buys”.
www.bsma.org.uk