Cash ISA transfers to speed up

ISA providers have pledged to speed up the transfer of accounts from one firm to another.

This year's tax year has been awash with stories of banks dragging their heels over ISA transfers – causing customers to lose valuable interest.

As a response, the British Bankers’ Association (BBA), the Building Societies Association (BSA) and the Tax Incentivised Savings Association (TISA) have published new guidelines to speed up the transfer of cash ISAs.

A major cause of delay has been identified as an insufficient exchange of information between providers.

The guidelines set out what firms are expected to do and within what timescale.

Current HM Revenues & Customs (HMRC) rules allow firms 30 days to transfer funds, but the new guidelines aim to "undercut this by a reasonable degree".

Adrian Coles, BSA director-general, said: “Building societies are aware of the very real problems faced by some customers transferring their ISA.

"We believe that these guidelines are a good first step to simplify the process, improve communication and ensure the customer gets a better level of service.”

Halifax today responded to the new guidelines stating it fully supported them and would be putting them in place.

Tony Wilcox, head of Halifax savings, said "Taking up the yearly ISA allowance should be the cornerstone of all UK savers plans, using the allocation means savers can make the most of the money they set aside.

"The new standards mean ISA customers can be sure the transfer process is very clear and transparent."

Further information is available at here.