A Sainsburys Bank spokesman feels that there are more restrictions and conditions applied to savings accounts than ever before.
Having looked at the current state of the market the Sainsburys Bank spokesman has noticed how many savings accounts have restrictions on withdrawal amounts and periods, as well as how it impacts on interest rates, with some quite hefty penalties on some for making withdrawals during the year.
Another aspect that has been noted is the use of age limits on some savings accounts, targeting either the younger or older market. Ideally all categories of customer should be able to enjoy similar levels of interest and benefits believes the Sainsburys Bank spokesman.
The Bank of Scotland has a fantastic opportunity for first time buyers saving a deposit for their first home – doubled up savings.
The way this works is that savers who regularly deposit money into a Bank of Scotland savings account, up to a maximum amount saved of GBP5,000, will have the balance matched by the home builder Persimmon. The one proviso is that this only happens if the savings are used as a deposit on a new house.
A spokesman from the housebuilder saw it as making a real difference for first time buyers, though they would still need a considerable amount saved elsewhere in order to make the 25 percent minimum deposit most mortgage providers require. The Bank of Scotland are also in favour of the scheme as they want to help home buyers as much as they can.
A new cash ISA has been introduced by the Alliance and Leicester, with an interest rate of six percent per annum and a minimum balance of just one pound.
The Easy ISA as it is called allows the usual maximum amount of GBP3,600 in each tax year, with management through either phone or internet. The offer is open to all consumers whether they are existing Alliance and Leicester customers or completely new to the building society.
The Easy ISA name is very apt and will hopefully bring more savers into ISAs where they have previously been put off. As an Alliance and Leicester spokesperson explained, a cash ISA is just like a normal savings account, the difference being that no tax is paid on the amount saved.
