Savers urged to check small print

Price comparison site, moneysupermarket.com, is warning current account savers to check the small print.

For instance, Alliance & Leicester’s Premier Regular Saver offers a huge 12% but only in conjunction with its current account that pays 1.5%. In comparison, the bank’s best current account pays 8.5%.

Another example is getting more people to invest in shares. Abbey’s Super ISA and Super Saver are only available when you invest the same amount in its Guaranteed Growth Plan investment product, and anyone taking out a Lloyds TSB Fixed Rate Cash ISA must open a Scottish Widows Investment ISA, according to moneysupermarket.

Kevin Mountford of moneysupermarket.com said with banks and building societies increasingly cross-selling products to boost their margins, there are now even more reasons to check the small print.

The number of options and breadth of linked savings accounts is greater than ever. These accounts tend to offer a market-leading proposition on the basis you take on another product with the same provider, which may not be such good value, added Mr Mountford.

Linked accounts can offer good value, but it is important that people look at the package as a whole rather than just being seduced by the lead offer. More than ever, consumers need to check the terms and conditions of any new deal as I expect more of this cross-selling to occur, concluded Mr Mountford.

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