Existing customers passed over for 'new money'

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The Independent Online

Savers face fresh difficulties as more providers focus their attentions on "new money" and leave existing customers on the bench. Financial research company Defaqto has revealed that several providers are introducing new accounts that do not permit internal transfers from existing savings accounts held with them.

"One worrying trend that has started to emerge is the launch of a number of savings accounts on the market that discriminate against existing customers by restricting funds deposited to 'new money' to the provider," says David Black, banking specialist at Defaqto.

Many consumers will be hoping to take advantage of recent rate hikes. Unfortunately, many of the best options are new launches or accounts that include an introductory bonus, which could mean that existing customers are unable to make the most of the best deals.

Egg's easy access internet savings account is offering 2.80 per cent AER with an introductory bonus of 1.55 per cent fixed for 12 months. But during this period no internal transfers are permitted from an existing Egg savings account. Similarly, Norwich & Peterborough building society customers are unable to transfer their money into its E-Saver.

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