Loyalty is not the Best Policy for Savers
Switching savings accounts could earn you money.
When it comes to our savings, many of us put our money in an account and then forget about it.
But sticking with the same account - either due to inertia or misplaced loyalty - is false economy when you consider you could easily get a better rate
on your hard-earned cash by switching it to another provider.
The credit crunch has been cruel to savers, and in the current low-rate environment you may be feeling confused about where to move your money.
But whatever you do, don't leave it languishing in a poorly-paying variable savings account, as unlike other areas of customer service, loyalty is not
rewarded in the savings market.
In fact, banks and building societies tend to reserve their very best rates for new customers, while ignoring loyal savers, so it's important to review your
accounts on a regular basis, and be prepared to switch regularly to get the best rate.
Read the Ts and Cs
Savers can now choose from a spate of new easy access accounts, but when shopping around, you need to be aware that savings providers often try
to lure potential customers in with table-topping rates.
The problem is, that while these may seem very appealing, a market-leading account one week might well become a poorly paying account the next -
so you need to keep a very close eye on the rate you are getting.
It is also important to watch out for the terms and conditions attached - such as withdrawal restrictions and penalties - as these are becoming
increasingly complicated, and could cost you money.
Beware of bonuses
Some accounts that feature in the best buy tables also include eye-catching introductory bonuses to draw you in.
In some cases, the bonus may be fixed which offers some peace of mind, but if it is variable, that bonus could be reduced at any time; either way, the
bonus will fall away after a certain period, potentially leaving you earning a paltry rate.
In the current low-rate environment, it makes sense to take advantage o