Money Helpdesk: Do postal accounts get stamp of approval?

I HAVE always saved at a bank branch, but better rates are often available via post, telephone or internet. What would setting up such an account involve? Are there any major disadvantages?

PM, Edinburgh

Michelle Slade, savings expert at Moneyfacts, writes:

Opening a telephone savings account can be conducted over the telephone, however the provider may request additional documents for proof of identity. You may have to nominate a current account to transfer money in and out of the account, after which you would need to ask the provider to transfer money between the two accounts. Some banks or building societies will give you the option of withdrawing funds by cheque.

To open a postal account, call the provider and request an application form. When returning the form, remember to include the necessary proof of identity documents. To pay in funds, post a cheque. Do not send cash. Withdrawals are made by cheque via postage, however some accounts may offer you a cash card facility.

The main disadvantage of conducting a savings account via post or telephone is that you cannot access your money instantly. It can take around three working days for a transaction to be processed and longer for a cheque to clear.

Pulling the plug on cold callers

I KEEP getting calls telling me I'm entitled to a government loan and asking me how much in debt I am. I have no intention of giving out any info, however the calls keep coming. What can I do?

RS, by e-mail

Yvonne Gallacher, head of Money Advice Scotland, writes: The Office of Fair Trading on 25 May issued warnings to 10 businesses who called customers advising they could access government schemes to help wipe out debt – which in fact were potentially misleading statements.

You were correct not to give any information over the phone, as they are cold calling and it could be anyone trying to establish your personal details.

With regard to what you can do to stop the practice, the best thing is to try to ascertain who is calling and report them to your local trading standards department. These can then liaise with the OFT, which can then take enforcement action to stop them.

A final word of advice, especially for people who are in debt, is NOT to look for help to those who are cold calling you. You should approach the recognised money advice sector which will appraise the options available to you. You can receive this advice for free. The advisers are there to help, and backed by local authorities and the Citizens' Advice Bureau service, which are working to recognised standards. For details of money advice agencies see www.moneyadvicescotland.org.uk, or telephone [phone]