Savers 'in the dark' over cash ISAs
By myfinances.co.uk staff
Many savers are not getting good interest rates on their cash ISAs and are failing to make use of features such as fund transfers to maximise their returns, a new report has warned.
Research by money.co.uk showed that over half (54%) of adults have either opened or plan to open a cash ISA in 2010-11.
Almost three-quarters (72%) of these savers will take the best headline rate, with only 47% looking for accounts that will allow them to transfer their assets at a later date.
Just 17% of consumers who had previously opened an ISA had actually used a transfer to increase their returns, while ten per cent admitted that they did not know how the process works.
Many savers were also in the dark about interest, with only 15 per cent saying their ISA provider kept them informed of changes in rates.
Chris Morling, money.co.uk managing director, said: "Clearly the majority of cash ISA customers need more help and advice if they are to make the most of the tax-free savings opportunity that cash ISAs provide."
Annual ISA limits increased on April 6th from £7,200 to £10,200, of which up to £5,100 can be saved in cash.
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