Hid­den cuts lurk be­hind head­line rate

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A HAND­FUL of banks and build­ing so­ci­eties now pay more than 1 pc on their easy-ac­cess ac­counts for those who run their ac­counts on­line.

But watch out for the terms and con­di­tions be­hind the head­line rate to en­sure the ac­count suits you.

Of­ten, they come with re­stric­tions on how many with­drawals you can make a year or the bank pays a bonus for the first 12 months af­ter which your rate nose­dives.

Top sim­ple deals in­clude RCI Bank Free­dom Ac­count at 1.1 pc, Shaw­brook Bank Easy Ac­cess at 1.05 pc and Char­ter Sav­ings Bank Easy Ac­cess at 1.01 pc.

Vir­gin Money pays 1.05 pc on its De­fined E-saver but you are lim­ited to mak­ing three with­drawals a year on the ac­count. If you make more you’ll earn 0.25 pc.

Leeds BS Lim­ited Is­sue On­line Ac­cess 2 pays 1.05 pc. The ac­count ‘ma­tures’ at the end of May next year when your money is trans­ferred to an­other ac­count. There are no de­tails yet as to what it will pay, so you might have to move your money then for a bet­ter deal.

Tesco Bank’s 1.06 pc rate in­cludes a boost of 0.66 per­cent­age points for a year, af­ter which your rate drops to 0.4 pc. Bank of Cyprus’s 1.05 pc rate drops to 0.6 pc when your 12-month bonus runs out.

The AA deal at 1.03 pc is avail­able only to mem­bers.

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