Nationwide: Isa holders should be able to switch to cash

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Nationwide: Isa holders should be able to switch to cash

Mon 1st Oct 2007

Nationwide has called for holders of individual savings accounts (Isas) to be able to switch all or part of their account into cash.

In order to supplement upcoming changes which state that Isa investors can switch to equity investment, Nationwide has asked the government to add the flexibility to spread investments between cash and equity without losing their tax-free status.

This move would follow the model of the child trust fund, which allows parents to switch between cash and equity.

Matthew Carter, divisional director for savings at Nationwide, commented: "Isas need to be simplified to make them easier for investors to understand.

"We think savers would be more encouraged to make full use of their Isa allowances if the system was simple to grasp and the differences between the cash and equity options removed."

Meanwhile, Nationwide has launched a new tranche of its guaranteed equity bond, effective from today (October 1st).

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