Depositors should thoroughly examine the structure, rate and fine print of new products before switching savings accounts. It is important to ask savings institution representatives questions. For example, a reader with £15,000 (€19,046) on deposit in ICS Building Society was earning less than 1 per cent on his account and decided to switch into a new product offered by ICS/Bank of Ireland.

This product offered a 2.5 per cent rate for new customers and the reader was upset that older ICS/Bank of Ireland customers were not rewarded for their loyalty. He wondered why new customers were given a better rate.

First, the two accounts are not comparable said a Bank of Ireland spokeswoman. The old account was a deposit account while the new one is a fixed-term share account. The fixed-term account rate of 2.5 per cent rate is guaranteed for one month.

When the month is up, the building society reviews the account and sends the customer a letter declaring the new rate. In addition, funds in the account are subject to 30-day notice before withdrawal is allowed.

The customer should consider his requirements, said the spokeswoman. "Should he put it in for 2.5 per cent and then take the risk of not knowing what his rate will be after that?" If he cannot afford the uncertainty, he should go with a product with a more guaranteed rate like a longer term fixed account for a year.