Quarter of ISA savers 'unaware of interest rates'

Quarter of ISA savers 'unaware of interest rates'
Date of Publication: Tuesday, 30 March 2010 00:00

Twenty five per cent of consumers have no idea of their cash ISA's interest rate and only 28 per cent "feel confident" they know their account's interest rate.

A quarter of ISA savers have no idea how much interest is attached to the cash-linked product.

Research conducted by ICM on behalf of the Cooperative banking group shows that while 92 per cent of ISA customers have such an account, only 28 per cent are confident they know the interest rate it pays.

However, as 25 per cent admit to having no idea the firm claims that as the financial year draws to a close consumers may not be making the best decision on where to transfer ISA accounts.

Rod Bulmer, managing director for Cooperative Financial Services, said: "It is worrying that people have invested their money in a product but they do not know what the interest rate is."

The news follows the announcement that the tax-free savings threshold for ISAs is set to increase. From April 6th consumers of all ages will be able to place up to £5,100 into cash ISAs each financial year.

By Nate SawyerADNFCR-2079-ID-19696340-ADNFCR
Tuesday, 30 March 2010 00:00
Bookmark and Share

Make a comment on this article

Comment
Please enter the following letters in the box below.
We're very sorry for this but we just need to ensure
that you are not a computer.

Top 5 ISAs

Provider
AER
Notice
Min Deposit
Max Deposit
Apply
View Full Table >
2.50%
Fixed term for 5 years
£15,240
£1,000,000
2.30%
Fixed term for 1000 Days
£15,240
£1,000,000
2.00%
Fixed term for 3 years
£1,000
£1,000,000
1.85%
Fixed term for 2 years
£1,000
£1,000,000
1.65%
Fixed term for 1 year
£1,000
£1,000,000

Aldermore 1 Year Fixed Rate ISA

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1,000
  • Flexible - add to your savings whenever you like
  • Unlimited withdrawals - access your money whenever you need it, without restriction or loss of interest
  • Easy to manage - do it online, by phone or by post
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Aldermore 2 Year Fixed Rate ISA

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1,000
  • Flexible - add to your savings whenever you like
  • Unlimited withdrawals - access your money whenever you need it, without restriction or loss of interest
  • Easy to manage - do it online, by phone or by post
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Aldermore 3 Year Fixed Rate ISA

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1,000
  • Flexible - add to your savings whenever you like
  • Unlimited withdrawals - access your money whenever you need it, without restriction or loss of interest
  • Easy to manage - do it online, by phone or by post
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

SBI UK Online Cash ISA 1000 days Fixed Deposit

  • Minimum deposit amount £500
  • Interest paid on balances above £500 and below £1,000,000
  • Account managed online or by visiting our branch
  • Interest paid on a monthly basis
  • Debit card provided only to the primary account holder if requested
  • Available to an individual, 18 years or over, who is ordinarily resident in the UK for tax purposes and has a permanent UK address
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

SBI UK Online Cash ISA 5 Year Fixed Deposit

  • Minimum deposit amount of £500
  • Interest paid on balances above £500 and below £1,000,000
  • Account managed online or by visiting our branch
  • Interest paid on a monthly basis
  • Debit card provided only to the primary account holder if requested
  • Available to an individual, 18 years or over, who is ordinarily resident in the UK for tax purposes and has a permanent UK address
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme