UK Money News
21st May 2008
MoneyExpert.com: Be wary of 'high-interest current accounts'
Consumers have been urged to be wary of bank accounts promising high interest and study the terms of the offer before committing.
According to MoneyExpert.com, there are currently 12 so-called high interest current accounts on offer which pledge to give savers a return of five per cent or more on their money.
However, out of these just one maintains this rate on savings deposits of over £2,500 and after this point any the bank pays what site dubs a "pathetic" rate of 0.58 per cent.
The sole account which offers the rate above this cut-off point is Coventry's First account which pays out 5.6 per cent up to a maximum £250,000.
Sean Gardner, founder of MoneyExpert.com, said: "High interest accounts are a great addition to the market particularly for those with modest balances looking to make their cash work harder.
"But customers need to remember that the tempting high rates are only effective for sums up to a point, normally around £2,500. If you're keeping any more than that in your current account then you should look elsewhere."
Alternative options recommended by Mr Gardner included Interest Savings Accounts and savings accounts.
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