#10 Don't be a sucker with your savings!

by Jane Baker on 02 July 2009  |  2 comments
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Here's another super simple 'what not do with money' rule.

Here's another super simple 'what not do with money' rule:

#10 Don't be a sucker with your savings!

Banks can be pretty devious when it comes to our savings. Unfortunately for us, they're very good at luring unsuspecting savers in with tantalising headline rates.

Then once we've fallen for it hook, line and sinker, that best-buy deal subtly dissolves into something decidedly substandard. And - this is the really clever bit - we often don't even notice.

It's like taking candy from a baby.

So, what do you need to look out for? Here are two of my most-hated tricks:

Easy access accounts which are anything but easy.

I really don't like accounts which pay top rates and market themselves as instant access. Yet if you take the trouble to read the small print, you'll find you could get charged for withdrawals. Err...I thought the whole point of 'easy access' was not to penalise savers for dipping into their cash?

So, in other words, the banks will craftily claw back that great rate if you dare to take any money away from them.

You'll also need to watch out for best buy accounts with bonus rates. They might look attractive, but they never last. Once the bonus has disappeared, you'll almost certainly be left with a really rubbish return.

The banks are banking on the fact that you'll never actually get round to moving your savings somewhere better, so they can get away with it for years.

So, the savings rule is simple: don't let 'em get away with it. Be a smart saver and beat them at their own game.