Long-term savers lose out on interest rates

Savers who have held their money in the same account for some time should look at moving their cash as the rates on offer are often much lower than those on new accounts from the same bank or building society.

Research from Sainsbury's Bank shows that many savings institutions have 'hidden thresholds', with lower returns on older accounts subsidising new offers. It says that out of 126 banks and building societies less than a quarter pay more than 3 per cent interest to all of their customers, while 84 of them pay less than 2 per cent on some accounts - only just above the inflation rate of 1.9 per cent.

'We believe that all customers should receive fair and attractive returns on a consistent basis, and not just for short-term gain,' said Pauline White, savings manager at Sainsbury's Bank.

Cheltenham and Gloucester customers, for example, who have their money stashed in one of its branch-based instant access accounts, Branch 10, get 3.45 per cent interest annually, whereas those with money in its instant access Cheltenham Gold account get a miserly 1.2 per cent on balances of £5,000 or under. Balances over this will still only earn a maximum of 1.35 per cent.

Halifax pays 0.7 per cent interest to those in one of its branch-based instant access accounts, Liquid Gold, but up to 2.6 per cent on its other branch-based account, Instant Saver. All those customers would do better moving to its internet-based Web Saver account, which pays 4.5 per cent.

According to industry analysts Defacto, Sainsbury's is one of only two organisations to have an account in the top 30 per cent of each of the internet, postal, telephone and branch categories. Its internet account tops the table for customers wanting to invest £1 or more, paying 4.75 per cent. For those with £1,000 and above to invest Bradford & Bingley pays 4.85 per cent via its eSavings 2 account.

'Rate tarts' force cuts in introductory offers

HSBC has reduced the 0 per cent balance transfer period from nine months to six on its table-topping credit card, making it the latest institution to dampen down tempting introductory offers.

The bank also increased its standard APR on purchases from 13.9 to 14.9 per cent. This still puts it among the best buys for those looking for a balance transfer card without a fee, but it is now beaten by the Yorkshire Bank's Gold card, which has 0 per cent for six months, reverting to 13.9 per cent.

For those who do not mind paying a balance transfer fee on switching, the Halifax One card offers the best rate at 0 per cent for 12 months reverting to 15.9 per cent. It has a 2 per cent balance transfer fee, capped at a maximum £50.

'Card providers profits are suffering at the hands of "rate tarts",' said Lisa Taylor of Moneyfacts.co.uk. 'In an attempt to claw back losses, providers are resorting to amending or withdrawing the headline offers originally designed to entice new business.'

Intelligent Finance has launched a card with a 4.9 per cent lifetime balance transfer rate. The card also comes with a 0 per cent introductory rate on purchases for the first eight months, rising to 16.9 per cent after that. The bank guarantees that two-thirds of customers will get this rate or better.

'While 0 per cent introductory balance transfer deals remain the most popular type of credit card among moneysupermarket.com consumers, there has been an enormous uplift in the number of people exploring the best deals for lifetime balance transfer cards,' said Peter Gerrard, senior researcher at moneysupermarket.com. 'It may be that people don't want, or have the discipline, to be savvy rate tarts over the longer term, especially now that many 0 per cent cards have started to impose balance transfer fees, often without a cap.'

Bouncing cheques bumped up by Barclays

Customers of Barclays Bank will suffer higher charges from the end of March if a cheque bounces or they exceed their authorised overdraft. The bank is putting up its 'unpaid fee', which is imposed when there is not enough money in the account to pay a direct debit or cheque, by £5 to £35, and its 'paid referral' fee by £5 to £30. The paid referral fee is imposed if something is forced through, for example a withdrawal that takes an account holder over their agreed overdraft limit.

The new fees are roughly in line with those of its competitors. NatWest charges £38 for unpaid referral fees and £30 for paid referral fees, Lloyds TSB charges £35 and £30 respectively while HSBC charges £30 and £25.

Barclays announced last week that its pre-tax profits were up 15 per cent in the last year, to £5.28bn. Its credit card arm, Barclaycard, saw its profits fall as the bank was forced to put aside £1bn to cover bad debt provision.