Great rate - but what's the catch?

There is now an extensive choice of headline rate instant and easy access savings accounts available but savers need to be alert to any restrictive conditions before they invest in an account.

Analysis by Defaqto of the 50 instant/easy access accounts paying the highest interest rates reveals that:

15 (30%) of them limit the number of withdrawals permitted &/or impose penalties on some withdrawals;

18 (36%) have introductory bonuses;

11 (22%) have a minimum withdrawal restriction of £100 or higher.

Of the 50 accounts only 19 (38%) have neither withdrawal restriction nor introductory bonus.

Additionally 9 (18%) of the 50 accounts are restricted to older adults aged 50+, 60+ or 65+.

David Black, Principal Consultant of Banking at Defaqto says: "It's encouraging to see so many accounts offering attractive headline rates but savers need to keep their wits about them to avoid choosing an unsuitable account."

"There's been quite a vogue amongst banks and building societies to launch instant/easy access savings accounts which restrict the number of withdrawals permissible, or worse still impose a penalty on all withdrawals. These accounts may suit some but will also result in many savers not achieving the advertised rate if they fall foul of the withdrawal restrictions."

"It's fine to take advantage of an introductory bonus but this is generally what boosts the account into best buy territory. When the bonus expires the account is very unlikely to remain competitive with the market leaders, so, if you choose one of these accounts, be prepared to move your funds elsewhere at the appropriate time."