Savers should shun headline rates of current accounts

The adviser and co-founder of online service said although many clients may have been lured by the recent rules allowing seven-day switches, a rate of 3 per cent or higher on one of these current account may hide a raft of fees.

Ms Bowes said: “Often there are fees that apply or rules that people fall foul of, such as changing jobs and being paid on a different day that means the consumer may not be fulfilling their obligation to their bank.

“Also, opening lots of current accounts to chase rates can also have an adverse affect on a client’s credit score, which could work against them if they want a mortgage or loan.”

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She added that advisers could look for savings accounts that might be better for clients looking to park their cash, rather than clients committing to opening a current account just to chase the rate.