Savers could be left waiting hours or even days to get their cash.
Many easy access accounts are not as instant as customers might believe.
Almost three quarters of the UK’s top easy access accounts impose restrictions that slow down withdrawals, new research by savings app Spring shows.
The study, carried out by MoneyComms, found that 73 per cent of the top 30 easy access accounts either impose a cut-off time or fail to make Faster Payments within two hours.
Half of the providers examined set a daily deadline for same day transfers.
Around a third require withdrawal requests to be made before 3pm or the money will not reach the customer’s account until the following business day.
Five of the top accounts say they will only send funds back by the end of the next working day, a major issue for anyone needing their money urgently.
Derek Sprawling, Head of Money at Spring, said: “Cut-off times and slow payment processing are a real challenge for many banks, and they’re a key reason why so many customers choose to leave their savings sitting in their current account.
Five of the top accounts say they will only send funds back by the end of the next working day
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GETTY“They want quick access to their money, especially in emergencies, and don’t want to be caught out by delays or complex restrictions.
“Open Banking is changing the game, enabling new solutions like Spring that offer the best of both worlds, a competitive rate and instant access, without needing to switch current accounts or wait hours to reach their savings.”
Andrew Hagger, Personal Finance Expert at MoneyComms, warned that many customers are unaware of these delays.
Mr Hagger said: “Most savers with an online easy access savings account probably assume that any withdrawal transfers to their nominated bank account would be made immediately, but that is often not the case.
Spring says it offers a simple solution by linking directly to a customer’s existing current account using Open Banking technology
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GETTY“Many providers have a cut-off time for same day transfers, and if you miss that, you will not receive your funds until the next working day, and that can cause big problems over a weekend.”
Spring says it offers a simple solution by linking directly to a customer’s existing current account using Open Banking technology.
The app promises no fees, no restrictions and instant access without confusing terms.
The findings highlight a wider issue in the savings market. Banks compete heavily on interest rates but less attention is given to how quickly customers can actually withdraw money.
At a time when family budgets are tight, fast access to savings is just as important as the rate being paid. For anyone relying on their savings in an emergency, the advice is to check the small print before assuming funds will be available instantly.
The warnings about delays come at a time when savers are already being urged to “review whether they are still getting a good deal” as fixed bond rates dip and easy access accounts lose ground.
According to Adam French, Head of News at Moneyfactscompare, the average easy access rate is now 0.06 percentage points lower than it was a month ago.
Cahoot is currently paying five per cent AER on its easy access account
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GettyDespite the drop, some competitive offers remain. Cahoot is currently paying five per cent AER on its easy access account, while Principality Building Society continues to offer 7.50 per cent AER fixed for six months on its regular savings account, the highest rate on the market.
Mr French said: “Savers looking to secure a guaranteed return on their cash should be aware that while there are a handful of notable new deals available on the market, some of the top rate fixed bonds have fallen slightly in the last week.”
This means consumers not only need to be alert to restrictions around accessing their money, but also to how much interest they are earning, making it more important than ever to check the small print before committing their cash.