Banks 'misleading savers over benefits'
By Harry Wallop Last Updated: 2:06am GMT 20/11/2007 Telegraph
MoneySupermarket, the price comparison website, has warned that an increasing number of lenders are imposing punitive terms and conditions.
For example, on most easy-access accounts, customers lose a month's interest if they take out any money.
If you deposit £5,000 in Coventry Building Society's online saver account offering 6.51 per cent, you should pocket £325 before tax in interest payments by the end of the year.
However, if you take out money on three separate occasions during the year, the sum falls to £244.
A year ago only one of the top five easy-access savings accounts imposed such penalties; now four of them do.
Kevin Mountford, the head of savings at MoneySupermarket, said these terms and conditions were misleading.
"These type of accounts are used by people to put money away for a rainy day ? when the car breaks down, or if you need to buy a replacement cooker," he said. "It defeats the object if you are missing out on any interest when you make a withdrawal from the account."
Four out of five of Britain's 25 million savers are estimated to have an easy-access account, with people depositing about £3,000 on average.