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'Too many withdrawals' could lead to extra bank charges
09/05/2008 09:49:00
Many banks are likely to hit consumers with penalty charges for withdrawing money from their instant access savings account too often, one financial expert has claimed.
Financial advisers Moneyfacts said that banks will pay you a higher rate of interest with savings accounts but they are expecting to keep your money for a longer period of time.
Michelle Slade, analyst at Moneyfacts, said that banks and building societies are not expecting a consumer to "dip in and out of their money" with this product.
Because of this, "there is going be some sort of penalty if you are going to make an excessive number of withdrawals from your account", she stated.
According to Moneyfacts, consumers need to be wary as almost a quarter of instant access accounts have some strings attached to them for making withdrawals which could lead a consumer into debt.
Research from Nationwide showed that over half of the consumers surveyed consider it very important that there is a no-notice period for withdrawals.
More than four in five believe it is important that there is no penalty for withdrawals.
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