UK savers forced to overcome restrictions

Tuesday, June 29th 2010

British people with a desire to save some of their cash are being penalised by restrictions on a significant number of accounts.

Research by financial research firm Defaqto shows some 38 per cent of monthly savings accounts are affected by regulations that mean they are not available to the entire market.

Indeed, 30 of the 79 options offer only limited availability, the company states.

Savings accounts traditionally pay a healthy rate of interest, says David Black, banking specialist at Defaqto, making them particularly popular.

He advises: "Consumers need to read the details very carefully to see whether they are likely to be eligible for the highest paying accounts."

Some of the most common restrictions in place include forcing those interested in saving to also open a current account and making deposits from an external source necessary.

Recent figures by the Investment Management Association showed the opening of ISAs in April was at its highest for nine years.