Savings accounts `should be used thoughtfully`

12 May 2008

Anyone using a savings account or considering opening one needs to make sure that they use it thoughtfully, according to one expert.

People should be taking into account how often they are likely to want access to their savings before taking up a particular option, Michelle Slade, from price comparison firm Moneyfacts, has suggested.

She has insisted that while good deals are on offer on savings accounts that cannot be accessed for a period of time, consumers need to be realistic about whether they might find themselves in real need of the funds they had previously set aside.

"For some people, if they have a sum of money they do not need access to, they can get themselves a fantastic rate on a fixed rate account, but people are wary of those, because the fact is you cannot get access to your money," she explained.

According to a study carried out earlier this year by Nationwide, almost 85 per cent of UK consumers feel there should be no penalty charge for demanding access to savings, while 54 per cent view instant access to these funds as an important issue.

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