Savers warned to watch out for restrictions

Customers opening savings accounts may not be aware of the conditions attached to them, an expert warns.

Helen Cook, head of savings at Sainsbury's Finance, insists savers are being seduced by great rates without realising that banks are often imposing vigorous restrictions on their products.

These include withdrawal limits or even penalties, while others are only available for certain age groups.

Ms Cook says: "As long as the rates are as artificially high as they are at the moment, then there has to be some compensation on the other side. There's no such thing as a free lunch - you're paying for it in some fashion."

She adds that the conditions are "subtle but effective ways" of banks discriminating between savers to attract only the ones with big long-term balances.

According to a recent poll by Defaqto on behalf of Sainsbury's Finance, 12 of the top 50 instant access/easy access savings accounts restrict the number of withdrawals that can be made, while four apply penalties.