- Accounts that suck you in with great rates – we reveal the worst offenders
Savers looking for a top easy-access account need to watch out. Eye-catching rates may look enticing, but dig a little deeper and things start to look very different.
I’ve trawled through the small print of six top-paying accounts – which all pay over 4.5 per cent – to find the details that are likely to slip you up.
The best-paying account is offered by Chase Bank, a generous-looking 5pc. But the rate includes a 2.25 per cent bonus fixed for 12 months. After that, you’ll earn just 2.75 per cent.
If you go for it, I would put a note in your diary to switch after a year. I also found in the terms and conditions that this account is only on offer if you sign up for its current account.
Sylvia Morris has trawled through the small print of six top-paying accounts – which all pay over 4.5% – to find the details that are likely to slip you up
Next up is Cahoot, the online offshoot of Santander, which also pays 5 per cent on its Sunny Day Saver.
The issue with this one is that you can only put in a maximum of £3,000. Great for savers starting out but not so good for those who have built up a decent pot.
Atom Bank’s Instant Saver Reward offers 4.75 per cent. But you’ll only see this rate if you leave your money untouched for 12 months. If you make a withdrawal, you earn just 2.5 per cent in that month.
I think Coventry BS 4 Access Saver might prove a better option. It pays a lower 4.5 per cent but lets you make four withdrawals a year without your rate dropping.
Next up is Snoop with its app-based Easy Access account that pays 4.6 per cent.
It is not a bank itself and funnels your money into Vanquis Bank where it is held in trust by a third party, Bondsmith. You can take money out whenever you want.
You’ll get it the same day if you put in your request before 11am.
Ask after that and you won’t see it until the next working day.
There there is Cahoot’s Simple Saver at 4.55 per cent.
Withdrawals turn up quickly and there are no rules on how many you can make.
The rate includes a boost for the first 12 months after which you need to move your money. Or you will find yourself in Cahoot Savings account with pays just 1 per cent.
App-based Sidekick pays 4.51 per cent including a bonus paid for 12 months.
Your money ends up with Oaknorth Bank which pays 3.95 per cent.
Sidekick then adds a 0.56 percentage point bonus during your first year, paid for out of the fees paid by Oaknorth to Sidekick for promoting its account.
You can take money out whenever you wish.
> Best cash Isas: Our independent tables with all the top rates
Nab £25 just in time for Christmas
Principality Building Society has a reputation for offering good regular savings plans.
And it has just come out with another cracker.
While we might be enjoying a heatwave, Christmas is just over six months away.
The society’s new six-month regular savings plan will come to an end just before then if you take it out now. It pays a top rate of 7.5 per cent, and is available online or through its branches.
You can save up to £200 a month – a total of £1,200 – and the rate is fixed during the term.
If you put in the full amount you will end up with £1,225, including £25 interest.
You can’t make any withdrawals but you can close the account if you need to. And if you don’t use the money for Christmas shopping, you can always move it into a cash Isa where interest will be tax-free.
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