Instant access accounts could waste money

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Instant access accounts could waste money

Wed 6th Jul 2005

Instant access accounts could waste money due to the poor rates of interest they offer, according to new research released today.

National Savings and Investments has found that less than two per cent in interest is paid out by 20 per cent of all instant access accounts.

In contrast, the average interest for a no-notice savings account is 2.8 per cent before tax, meaning many Britons could save a lot more money in interest.

"While we often put a lot of thought into where to put our long-term savings many Brits simply choose the easy option for their short-term savings," said Karen Jones, marketing director at National Savings.

"Access and flexibility are important but savers shouldn't have to pay for this."

National Savings says that by switching to Premium Bonds, which require eight days' notice for withdrawals, people could earn a lot more on their savings.

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