People who have “easy access” savings deals are being urged to read the small print of their accounts, as some providers “penalise” savers for taking withdrawals.
Easy access accounts – which allow you to deposit and withdraw money when you need it – are popular due to their flexibility.
However, experts have said there may be “hoops for savers to jump through” to be eligible for the most lucrative rates.
Some, for example, offer a top headline rate which falls if you withdraw your money.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Savers need to be wary of certain terms and conditions.
“Despite being called easy access, that just means savers can access their money when they want, but these accounts can still limit the number of times someone can take out their cash.”
These types of accounts often have upfront bonuses which inflate the overall rate advertised.
It is down to the account holder to review it and switch their pots when their bonus expires, though, which can see the rate nosedive.
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They are still a good option though, Ms Springall said, if savers are savvy enough to monitor them.
“The rates offered on easy-access accounts are variable and usually get cut in response to Bank of England base rate reductions.
“There are however some accounts out there which apply short-term bonuses but can also provide a rate guarantee.”
Chase has a 2.25 per cent bonus for 12 months with a Boosted Rate deal, where you will get 5 per cent.
However, they also have a rule that says the rate is guaranteed to be 1.5 per cent below the Bank’s base rate.
Atom Bank also offers a rate of 4.75 per cent, which falls to 2.5 per cent in months that you withdraw.
Chip provides a rate of 4.56 per cent – a variable deal of 3.24 per cent with a 1.32 per cent bonus for new customers.
Last week, the Bank voted to hold interest rates at 4.25 per cent. Six members of the Bank’s Monetary Policy Committee (MPC) voted to keep rates on hold, while three supported a reduction to 4 per cent.
Savings rates tend to follow the base rate, although there are still deals available above 4.25 per cent.
Ms Springall said it is “really important” for savers to understand all the terms on any account before they apply.
Sarah Coles, head of personal finance at Hargreaves Lansdown, added that if people do not realise there are rules you need to follow with these accounts, you can “end up tying yourself in knots”.
The banks do this because it is a useful way to boost their headline rate and get themselves to the top of price comparison sites, in order to attract more money, she said.
“By limiting the number of people who will actually end up getting these rates for the entire time they hold the account, it keeps a lid on how much it costs them to offer these deals.
“Some will limit the number of withdrawals you can make – or will drop the rate in any month you make a withdrawal.
“This might work if you only intend to take cash on specific dates, but you need to be aware of the limits, or you could get far less interest than you were expecting.”
Tiered interest rates are another headache, she said, because some will offer higher rates when you have more in the account.
She advised savers to ask themselves whether they can maintain a certain balance before choosing this type of account.
Craig Rickman, personal finance expert at Interactive Investor, said: “It’s vital to think carefully and check the small print when finding a home for your hard-earned cash savings, especially at a time when savings rates are falling and inflation is proving sticky.
“Forfeiting valuable interest payments could mean the value of your money erodes in real terms, making a dent in your future wealth.
“When choosing a savings account, you should also consider other factors that can eat into your wealth, such as tax.
“Making the most of your personal savings allowance – which is £1,000 for 20 per cent taxpayers and £500 for 40 per cent ones – and using a cash ISA will mean you get to keep all your interest, instead of HMRC taking a slice.”
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