How-to Guides » OLD GUIDE Build up your savings

Look out for catches

3 tips on this task  |  Tweet

1. When you choose your savings account, make sure you read all the terms and conditions carefully before you sign on the dotted line. This is the one and only way to make sure you don't get tripped up by a nasty catch further down the line.

2. With an emergency savings account, it's particularly important to check your entitled to penalty-free instant access whenever you need it. These days an awful lot of accounts are marketed as easy access even though they have strict limits on when you can make a withdrawal. For instance, an emergency savings fund won't be of much use to you if you can only take money out four times a year.

3. Many easy access savings accounts offer a juicy temporary bonus as part of the return which will disappear often, after a year. This normally means the rate will drop dramatically once the bonus period is over. This is a good time to review your savings, and switch to a new account if necessary. Read Beware of bonus rates on your savings to find out more.