Easy access bonus rates coming to an end

Anyone who took out a best buy savings account this time last year should check their rate, as many of the top paying accounts included generous bonuses which are now coming to an end, and those that do nothing could find themselves languishing on a low rate. Failure to switch to a better deal now could cost some savers as much as £130 in lost interest, according to comparison site moneysupermarket.com.

Bonuses are a great way for savers to give their savings an extra boost. However, the onus is on the individual to check when their bonus expires and take action. Currently seven of the top 10 easy access accounts include bonus rates with an average length of 12 months; and in some cases the bonus makes up 80 per cent of the AER.

Further analysis shows that those savers who took out the best easy access account this time last year could be £130 out of pocket if they fail to switch accounts.

Kevin Mountford, head of savings at moneysupermarket.com, said: "Bonus rates are a great way for savers to maximize the return on their savings. And this is particularly important at the moment with interest rates being so low, but the benefits can soon be wiped out if you forget to switch once the bonus period has expired.

"Unfortunately savers cannot rely on their banks to remind them that their deal has come to end, so they really have to be vigilant and go as far as writing it in their diary or sticking a post-it note on the fridge so they don't forget when their savings rate will plummet.

"It's well worth taking advantage of easy access accounts with bonuses, but once the introductory offer has ended the account has served its purpose.

"Anyone who opened an easy access savings account last autumn should now be looking for a new home for their hard earned cash. Competition is still strong in this market and the leading rates continue to be well above the 0.50% Base Rate."