Possible Fees & Charges

Many banking facilities are provided free-of-charge with a savings account. These normally include: internet and telephone banking, and most of the services offered by those types of banking (such as transfer between two UK accounts); cash withdrawals at most ATMs (exceptions apply to certain ATMs which will always indicate that a fee applies before the withdrawal takes place); transfer of your savings to another account provider. Nonetheless, there are certain account services that are almost always subject to fees. For example, a customer may be given an electronic account card, but advised to only make withdrawals when absolutely necessary because any withdrawal will reduce the interest earned and/or negate the possibility of bonus interest rate benefits.

Some accounts require notice to be given before funds can be withdrawn (see Notice Accounts). If this is the case, an unauthorised withdrawal can lead to penalties. This may be in the form of a charge, or more often a loss of interest for a period equal to the notice period usually required. On a large balance this loss of interest can be significant.

Other account types, such as saving bonds, may force the account holder to keep the funds in the account for a specified period and forbid withdrawals within this time. If you must withdraw money out of a savings account where withdrawals are not usually permitted, a flat fee per withdrawal may be levied, or the withdrawal of funds may only be possible on the condition that the account is closed.