Find out how to make the most of your money by choosing the right Cash ISA and transferring your existing Cash ISA savings.
Here's all the information you need to find out how to move your money to the Cash ISA that will give you the best return possible:
- Find out how to choose the Cash ISA that's right for you.
- Find out how to transfer your Cash ISA without penalty.
- Compare Cash ISAs that accept transfers in.
- Compare Cash ISAs that allow penalty free transfers out.
Confusion reigns as consumers are left in the dark over cash ISA interest rates.
- Only 15% of cash ISA customers think providers have been effective at keeping them informed of changes to cash ISA interest rates
- Almost 3m cash ISA customers do not know how to transfer funds to new productsi
- Over 2m believe transferring a cash ISA would ‘use up’ their annual allowanceii
Following a cash ISA super-complaint lodged by Consumer Focus, research by money.co.uk has revealed the full extent of consumer confusion surrounding cash ISAs, revealing that as much as 83% of cash ISAs from 2009 or earlier could be earning interest of 0.1% or less.iii
The research, which has prompted money.co.uk to develop a dedicated cash ISA information resource online, reveals that consumers are largely failing to effectively manage cash ISAs to make sure they consistently pay good rates of interest:
- Only a fifth of consumers who have ever held an ISA keep a careful eye on cash ISAs taken out in 2009 or earlier to make sure they continue to pay good rates of interest
- Only 17% have transferred funds into new ISAs to get better rates of interest.
Tellingly, only a small minority of cash ISA customers feel their providers have been effective at keeping them informed of changes to interest rates, to help them manage and maximise their money effectively:
- Only 15% think their providers have been effective at keeping them informed as to changes in cash ISA interest rates
- Only 8% feel their provider has been effective at keeping them informed about new ISAs paying better rates of interest
Finally, the research suggests that the consumers investing in cash ISAs in 2010 remain focused on headline interest rates and are paying too little attention to potential transfer limitations and associated fees:
- 54% have invested or plan to invest in a cash ISA this year, with almost three quarters (72%) of those focused on finding the best interest rates available at the time
- Less than half (47%) of those investors will focus on products that allow funds to be transferred at a later date, while just over half (53%) will make sure there are no ‘hidden charges’ associated with the product
Chris Morling, MD of money.co.uk, said: “This confusion and perceived lack of information is a real problem as many of the cash ISAs that advertise 'headline grabbing' returns rely on introductory bonuses to temporarily inflate their rate. Once these come to an end, savers can find themselves unwittingly earning as little as 0.05%.
“The average return on cash ISAs now stands at 0.41% because so many have funds languishing in accounts paying so little in the way of interest. As Consumer Focus rightly pointed out, the current system just isn't working.
“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 – help they do not feel they are getting from providers.”
To help address the issue, and provide cash ISA holders with more information on rates and transfer rules, money.co.uk has established a dedicated cash ISA information resource online. It includes:
- Clear guides to switching funds from an existing ISA to a new product paying better rates of interest
- General information offering clarity on cash ISA product options
- A dedicated product comparison resource, detailing only cash ISAs that allow outward transfers at no cost, and which can be used to assess 2010 cash ISA options according to a wide range of features rather than just the headline interest rate.
Notes for Editors
About the research
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2128 adults. Fieldwork was undertaken between 9th - 12th April 2010. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
Case studies
Cash ISA case studies, illustrating the research findings, are available on request
About money.co.uk
money.co.uk is one of the UK’s fastest growing money comparison websites. It offers whole of market comparison on more financial products and services than any other comparison website.
Comparison tables are complemented by a unique Advanced Search feature that allows products to be compared side by side according to any combination of a huge range of product features, terms and conditions, not just the headline rate. Along with expert guides, and a range of other features, this ensures visitors can make informed comparisons and choose the right financial products with confidence.
It makes saving money and making money easy.
