Potential Hazards Hidden in Six Savings Accounts: Careful Attention Needed to Avoid Unforeseen Costs - Sylvia Morris Warning Sounds Out on Specific Financial Options
Hey there! When it comes to hunting down a top easy-access account, watch out for alluring rates - they might not always be as great as they seem. Here's a quick rundown of six accounts boasting more than 4.5% interest, but with some hidden strings attached.
First off, Chase Bank offers a seemingly generous 5% rate. But don't get too excited, as that 5% includes a 2.25% bonus fixed for 12 months. After that, you'll earn just 2.75% - so don't forget to set a reminder to switch after a year. Also, be aware that this account is only available if you sign up for their current account.
Next on our list is Cahoot, an online platform operated by Santander, with a 5% rate on their Sunny Day Saver. The downside? You're limited to depositing no more than £3,000. If you've built up a larger savings pot, this account might not cut it.
Atom Bank's Instant Saver Reward delivers 4.75%, but only if you leave your funds untouched for 12 months. If you decide to make a withdrawal, your rate drops significantly to just 2.5%.
Coventry BS 4 Access Saver, offering 4.5%, could be a better bet. Although it pays less, it allows for four withdrawals a year without a drop in rate.
Snoop's app-based Easy Access account also presents an attractive 4.6% rate. Unlike traditional banks, Snoop isn't a bank itself but funnels your money into Vanquis Bank. Withdrawals can be made anytime before 11 am, with the money appearing the same day. Request after 11, and you'll see your funds the next working day.
Cahoot's Simple Saver follows with a 4.55% rate, and quick withdrawals with no limits on the number imposed. However, the rate includes a boost for the first 12 months after which you'll have to move your money or find yourself in Cahoot Savings, paying a mere 1%.
Sidekick's 4.51% rate includes a 12-month bonus, with your money ending up at Oaknorth Bank, which pays 3.95%. Sidekick then adds a 0.56 percentage point bonus during the first year, paid for by Oaknorth's promotional fees. As always, you can take out your money whenever you wish.
Last but not least, Principality Building Society's new six-month regular savings plan offers a top rate of 7.5%, available online or through its branches. You can save up to £200 a month - a total of £1,200 - with the rate fixed for the term. Keep in mind that you can't make withdrawals or close the account until the term ends. But if you manage to save the full amount, you'll end up with £1,225, not including the £25 interest.
Just remember, high rates often come with specific fees, restrictions, and conditions. Always read the small print before diving in! Time to compare, research, and make the best decision for your savings goals!
- Personal-finance tip: While Chase Bank offers a 5% interest rate, remember that the 2.25% bonus is only for 12 months, so set a reminder to switch accounts after a year.
- In case you're considering Cahoot's Sunny Day Saver, be aware that you're limited to depositing only £3,000, and the rate might drop if you need to make a withdrawal.
