Savers 'should read account small print'

People looking to open a new savings account should ensure that they weigh up the pros and cons of each deal before signing up with a financial institution, it has been claimed.

Michelle Slade, an analyst at the independent financial information group Moneyfacts, has warned consumers that there may be restrictions on some accounts as to the frequency and notice period of withdrawals.

Research by Nationwide found that 54 per cent of consumers surveyed said that it is essential that they have instant access to withdrawals while 84 per cent did not believe that there should be a penalty imposed for making them.

However, Ms Slade said that almost 25 per cent of accounts do impose restrictions, with some paying no interest if a withdrawal is made and others only allowing a certain number of withdrawals per year.

"Think about how exactly you are going to use the account. If you know you are going to need regular access, as you have in the past with a current or savings account, make sure you look for one that does have that. Most of this stuff should be in the terms and conditions," she advised.

Some 78 percent of those surveyed by Nationwide said that they place their money into a savings account.