How easy-access deals fine you for taking cash out

SAVERS face jumping through an increasing number of hoops to squeeze every penny of interest out of their savings.

There are a host of restrictions placed on setting up top-paying accounts — and even when you’ve got round the more obvious ones, you face a long list of other problems. Some banks and building societies refuse to let you open an account, or they dictate the number of times you can take money out, even though they class your account as easyaccess. Others limit the amount you can put in or take out.

Anna Bowes, director at data analysts Savings Champion, says: ‘The terms and conditions on accounts have mushroomed from the days of simple savings accounts. Now many are littered with lots of restrictions that can confuse savers.’

Cash Isa providers often refuse to allow savers to open an account with money they have built up in Isas with other providers. Both Tesco (at 2 pc tax-free) and NS&I (at 1.75 pc) allow only new money to be put into the account.

Even on taxable easy-access accounts, some existing savers aren’t able to switch into better paying deals.

Bath BS bans its savers from switching money from its poorer paying accounts into its Premier Instant Issue 2.

Any money going i nto the account, which pays 1.16 pc after tax (1.45 pc), has to come from other banks and building societies. Restrictions on Coventry BS Online Saver 5 at 1.28 pc (1.6 pc) mean you can’t open this account if you have ever held one of its previous issues.

Tipton BS’s branch- based Hallmark Access, at 1.04 pc ( 1.3 pc), will let you open an account only if you live in its branch-network area. If you live elsewhere, the account is open to you only if you joined the society before January 1, 2012.

You can’t open the BM Savings Online Reward Issue 4 at 1.36 pc ( 1.7 pc) as a joint savings account. The bank lets you operate it using only one name.

I ncreasingly, the terms and conditions on so- called easyaccess accounts severely limit the number of withdrawals you can have. Make more than those specified and you will lose interest, or even find you can’t get hold of your money for months.

The Tipton account lets you take money out only three times in a calendar year — by cheque.

After that, your money is locked away until the start of your next year. During this time you can’t make any more withdrawals or even close your account.

With the BM and Coventry accounts you are allowed four free withdrawals a year, and two with the West Bromwich BS Branch Easy Access Saver 3, which pays 1.28 pc (1.6 pc).

You can make more, but it will cost you. For example, with BM Savings you’ll earn 0.4 pc (0.5 pc) from the date of your fifth withdrawal. The Hinckley & Rugby BS Premium Saver at 1.2 pc (1.5 pc) is more generous, with one free withdrawal a month. And the minimum you can take out is £250, rather than the usual £1 or £10. But it is only available to savers living in its operating area. And some accounts automatically cut your rate even though they claim not to pay a bonus. I nstead, t hey tempt you with a high introductory rate, which plummets after only a year. Halifax Online Saver shows a headline rate of 1.04 pc ( 1.3 pc) and claims there is no bonus on the account. But after the first 12 months its ‘ introductory rate’ plummets to 0.16 pc (0.2 pc).

Santander claims it pays no bonus on its eSaver11.

But the rate falls from 0.8 pc (1 pc) to 0.4 pc (0.5 pc) after a year when your money is switching i nto i ts Everyday Saver account.