Simon Read: 'Banks stand by teaser rates. They should shout just as loud about the real ones'

The bonus introductory rate on savings disappear after a year, while special low charges on mortgages and credit cards vanish after a year or two

I've been taken to task for my article about introductory and teaser rates. I warned that savers and borrowers were in danger of ending up in the wrong deal once they'd been tricked into opening a savings account or taking out a mortgage or credit card that they'd chosen because of the headline rate.

My belief is that millions of people who only occasionally seek out a financial deal want to find a decent one that they can then forget about as they get on with their life. If you're that type of person, which I am, you want to find a safe home for your savings that pays a decent rate.

By the same token you are seeking a mortgage that you can afford and, if you need to borrow on a credit card, getting into problem debt because of high charges won't be on your wishlist. In short, you need to know that the rate you've agreed is the rate that you're getting. You don't want to discover a couple of years later that the interest on your savings, or your borrowing, is much less attractive than you thought.

But that's exactly that happens with most financial products now. There's a bonus introductory rate on savings that disappears after a year, or a special low charge on mortgages and credit cards that vanishes after a year or two. With savings deals, you can almost guarantee that today's "best buys" will be paying a paltry 0.1 per cent after the introductory period has ended. With a "special rate" mortgage you'll end up paying around 5 per cent after a couple of years, while with a credit card the figure will be around 19 per cent.

I'd like financial companies to be forced to advertise the real long-term rate, with the special deal in the small print – rather than the other way round, as it is now. That would ensure that no one was suckered into an expensive mistake, as happens now. Has it happened to you? If so, you can rest assured that you're far from alone.

However, the financial firms rightly point out that the great deals can be of real benefit if you monitor your accounts and move swiftly to ensure that you don't end up paying too much. Mike Regnier is chief commercial officer at the Yorkshire, the building society that owns the Chelsea building society brand, which last week launched the 0.98 per cent mortgage that prompted my original article.

He said: "The key point about the fees attached to a mortgage is to look at the overall cost. Those borrowing larger amounts are more likely to find that a mortgage with a higher fee and lower rate gives them better value overall, whereas those borrowing smaller amounts may be better taking a product with a lower, or sometimes no fee and a slightly higher rate.

"For example, someone borrowing £300,000 would pay about £578 less over the initial two-year term if they chose the 0.98 per cent tracker mortgage with a £1,545 product fee, compared to our 1.69 per cent tracker which has no fee and £250 cashback. But someone borrowing £150,000 would pay about £609 more over that initial period if they took the 0.98 per cent option. It can be complicated, which is why we have mortgage advisers to guide people through the process."

In other words, the building society points out that it is offering a wide choice of deals to help different borrowers.

The Halifax says the same principle is true for savings. A spokesperson told me: "Introductory rates provide customers shopping around with the opportunity to find more competitive offers, and for many are a great way to make the most of their savings.

"We make it clear to savers on account opening that their rate is an introductory rate – and we are transparent, clearly showing what the reversionary rates will be. We ensure the current rate of interest is prominent both online, on mobile and on statements. Customers are notified two months in advance of a bonus rate maturing, and we encourage savers to regularly review the interest rate that they are receiving."

I have no problem with people knowing exactly what they're getting into and being informed about the risks of accounts ending up being far from the best. But I know from bitter experience that it's easy to ignore a letter or email from your bank. And then you can quickly end up out of pocket.

So I welcome a new range of mortgages launched by Barclays this week. They're all fee-free, which means the rate you see is not bumped up by lots of extras. If you're buying a home, rates start at 1.79 per cent – which, on the face of it, doesn't look great compared with the market-leading lower rates that many lenders offer. But if you take the time to do your sums properly, you may well find that the higher-rate loan or, indeed, the lower-interest savings account, may be a better option over the longer term.

s.read@independent.co.uk

Twitter: @simonnread