Warning over withdrawal fees

According to moneyfacts.co.uk, although banks are meant to offer good debt management opportunities, some charge up to £10 for people to take their money out from a branch.

“Today’s savings market is littered with accounts that have bonuses and a whole array of withdrawal restrictions, ranging from loss of interest, tiered interest to a limited number of free withdrawals,” said Rachel Thrussell, head of savings at the website.

“Problems arise when these accounts are promoted as instant access or no notice and if the consumer is not made fully aware of the terms, they could be in for a nasty surprise when asked to give notice or lose interest. They could receive a lower rate of return or asked to pay to withdraw.”

Financial institutions that have charges for withdrawal include the Royal Bank of Scotland, Woolwich, Coventry Building Society, Alliance & Leicester and Yorkshire Bank.

Ms Thrussell warned that any debt management schemes banking on interest could be wiped out by a single withdrawal.

She urged consumers to shop around and be fully aware of any charges.

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