Dodge these three savings pitfalls!

When is a great savings account not all it's cracked up to be? When it has a host of hidden catches...

In this new climate of frugal living and austerity, many people are (very sensibly) starting to get into the savings habit for the first time.

If you're hunting for good place to stash your cash, your main priority is likely to be getting a good rate of interest.

But before you go for that market-leading account, make sure you've gone through the small print with a fine-tooth comb. I'm going to highlight three of the worst pitfalls to avoid.

Unpredictable bonus rates

Many 'market leading' accounts include introductory bonus rates to entice you in. These bonuses usually increase your overall rate of interest by between 0.5 and 1.5%.

The trouble is, the 'bonus' element of the rate is temporary, usually lasting no more than a year. And when it's withdrawn, you're often left with an account paying a pretty measly rate of interest.

I'm not suggesting you completely avoid accounts with bonus rates, but you do need to keep a close eye on things and make sure you transfer your balance as soon as the rate becomes uncompetitive.

And personally, I would only opt for an account with a bonus rate that was fixed. Certain savings accounts now offer variable-rate introductory bonuses - which essentially mean the provider can reduce your rate at any time.

For example, the Egg Savings Account (Internet) offers a variable rate of 2.5% AER on balances up to £100,000. And this includes an introductory variable bonus rate of 1.25%. This means you can't rely on your deal staying competitive - and so that gets the thumbs-down from me.

Compulsory linked products

When you find a savings account with a juicy interest rate, you also need to make sure you're not being sucked into making a commitment to other, linked financial products sold by the provider.

For example, Abbey's Super Fixed Rate Monthly Saver is a regular savings account which offers you an impressive fixed rate of 6% AER for 12 months, when you save anything between £20 and £250 a month.

This might seem like the answer to your prayers - until you realise that you also need to open a regular investment, pension or protection plan with Abbey to qualify for the deal.

This is a very big commitment just to get a savings rate which expires after a year. Unless I was already intending to open one of these Abbey plans, I'd leave the account well alone and look elsewhere.

'Easy access' accounts - that aren't

Certain savings accounts penalise you heavily if you make any withdrawals. Most regular savings accounts cut the rate of interest you receive if you touch your money, and some savings bonds force you to close them altogether if you need to access your cash early.

Some of these penalties may seem extreme, but at least they're in keeping with the nature of the accounts. Both regular savings accounts and bonds are designed to lock your money away; and they usually reward you will a healthy interest rate in return.

What I really don't like is when accounts claim to be 'easy' or 'instant' access - when in fact they're nothing of the sort. In some cases, you'll be penalised heavily for making just one withdrawal!

For example, the Sainsbury's Finance Internet Saver markets itself as an easy access savings account, and offers a variable rate of 2.6% AER. Although the rate can change, it is guaranteed to be at least 2% above the Bank of England base rate for 12 months.

Now, if the Sainsbury's account really was easy access - with no penalties for withdrawing your cash - this rate would make good financial sense. In exchange for rates that are lower that regular saving accounts or bonds, easy access accounts should give you the flexibility to access your money as and when you need it.

However, if you make just one withdrawal during the 12 months, you'll be shoved onto Sainsbury's' standard Internet Saver interest rate - which currently stands at a piffling 0.75% AER.

On top of all that, you can only get the 2.6% rate if you have more than £5,000 in the account! WAY too many strings for me...

My top catch-free picks

Thankfully, there are still some no-strings savings accounts that offer you decent rates of interest. Here are my top picks in each category:

Regular savings: The Barclays Monthly Savings Account offers a great fixed rate of 6% AER for twelve months.

The minimum monthly deposit is £20, and the most you can put in every month is £250. And unlike the Super Fixed Rate Monthly Saver from Abbey, this account doesn't require you to sign up for any linked products.

Bonds: If you're willing to put a lump sum away for two years, I'd recommend the HiSAVE Fixed Rate two year bond from ICICI.

As long as you have the minimum £1,000 deposit, you'll get a fixed, market leading rate of 4.35% AER.

Easy access: One genuinely easy access account which still pays a semi-decent rate of interest is the ING Direct (UK) Savings Account.

Although the 2.75% AER rate is variable, it does include a fixed, 12 month bonus rate of 2.22% - so you can be assured your rate isn't going to drop below this in the first year.

You can deposit and withdraw money whenever you like, with no financial penalties. And you can start saving from £1, with no minimum or maximum monthly deposits required.

More: The best cash ISAs for new starters | Ditch your rubbish savings rate

Compare savings accounts with lovemoney.com.