Savers could earn extra interest that totals up to £14.5b each year as the result of new plans that will put an end to the year of chaos by speeding up Isa transfers. Starting January of next year, Isa’s will be transferred to a new provider quickly so that customers receive a much ‘fairer’ deal.
Now Isa transfers must occur within only 15 working days. Before the limit was 23 working days although for the most part building societies and banks seemed to ignore the requirement leaving customers often in limbo.
Banks also have agreed that interest will begin to build up just two days after fund receipt. The guidelines were set by the Office of Fair trading in response to a large complaint issued by Consumer Focus the watchdog.
Many people have complained about their own Isa troubles, which has helped to bring the enormous scandal to light. So now building societies and banks are to be held accountable.
Consumer Focus attacked the poor processes surrounding Isa transfers that have caused hundreds of customers to be left waiting for months for money to reappear while losing hundreds of pounds in interest.
The news that transfers times will now be acceptable offers some respite, but for the thousands of customers that have earned interest rates as small as .1% without the ability to access their own money the change will be too late.