Raw deal for savers who opt for ‘no notice’ accounts

The frequency of withdrawal should be no issue.

What a surprise to find that some providers restrict the number of withdrawals and, if exceeded, they will close the account, fine you or cut the interest.

Research by Moneyfacts reveals an appalling situation.

If any withdrawal is made at Furness, the rate on its Easy Postal Saver is cut from 1.70 to just 0.70 per cent.

HSBC reduces its Online Bonus Saver rate to just 0.25 per cent if a withdrawal is made.

Both Citibank (Reward Saver) and Chelsea (e-Saver Reward) pay no interest for the whole month in which a withdrawal is made except in Chelsea’s case in the magic month of April.

Each year Manchester Building Society permits only three withdrawals on its Platinum Instant account before closure whilst Teachers with its mis-named Smart Saver allows just one free withdrawal before switching the investor from 2.60 per cent to its ‘Extra Ordinary’ 0.50 per cent rate.

The rate is cut to a derisory 0.10 per cent from 2.30 per cent at Santander for any month in which a withdrawal is made (Branch Saver account).

The same almost nil rate applies at both Nationwide if more than one withdrawal is made a year from 3.02 per cent on £5,000 on its MySave Online Plus account and Triodos Bank if over three withdrawals are made on its Online Saver Plus which otherwise pays 2.50 per cent.

Leeds allows just two withdrawals a year and closes the Postal Max account when a third withdrawal is made.

Cheltenham & Gloucester allow only two and, once closed, refuse to allow a new account to be opened for six months.

Barnsley and Yorkshire Building Societies not only limit withdrawals without penalty to just three a year but count closure as a withdrawal (Triple Access Saver).

Barclays cuts interest from 1.25 to 0.85 per cent when a withdrawal is made in that month (e-savings Reward).