Thirteen top providers are the focus of an investigation into the adequacy of explanations regarding money being transferred between cash Individual Savings Accounts.
Account holders could lose money if they do not abide by the rules for tax-free accounts. Which? provided the report, which indicated terrible interest rates on ISAs. They said that if the rules for switching were not followed, the tax relief benefits would be forfeited. This requires accurate and clear information. Moneyfacts says that the average interest rate on an Isa in cash lies at 2.27%.
HSBC was ranked lowest, while Nationwide was rated with the best total scoring.
Head of financial services for Consumer Focus, Sarah Brooks, warned, “Financial institutions create their own version of an easy product, but obfuscate it with both unclear and wrong information, bad service, and sluggish switching systems.”
“We would like to see the Financial Services Authority more aggressively control the banks’ marketing, managing, and selling of cash ISAs. They must step in between the bank and the consumer to prevent loses due to faulty or misleading practices.”
“The consumer may have everything they have saved up in that account. So when we read of the banks’ profits in the paper, we should hold them to a very high standard regarding such a simple aspect as adequately training staff.”