Investigation into big-named, low return savings accounts
How would you feel if you’d bunged your money in a savings account called ‘The All-Singing, All-Dancing, Many Bells And Many Whistles, Ram-A-Lang-A-Ding-Dong Rocket Account’ only to find that it gave you a crappy interest rate of 0.1%?
The Advertising Standards Authority are planning an investigation into banks and building societies with accounts that have sexy, thrusting names but actually deliver next to nothing for savers.
For example, the name of the Halifax’s Liquid Gold account would suggest that a lucky saver would be on the receiving end of a never-ending stream of interest cash flowing into the account – in truth you’ll get a rate of 0.1%. It’s the same story with HSBC's Premier Savings, First Direct's Bonus Savings and the Newcastle Building Society’s Nova Plus instant access account. Exciting names – poxy returns.
The findings come following analysis by independent experts Defaqto, who say that banks were offering a sexy, thrusting 6.5% on instant access savings accounts as recently as last November. For better returns, savers should look at moving their cash around regularly, following the best deals or switching to fixed-rate bonds, which can pay over 4%.
In a nutshell, if you see an account that calls itself the ‘Free Sex And Molten Cash Account,’ read the small print before you plough your hard-earned into it.