Abbey warns Isa holders to beware of restrictive transfer conditions

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Abbey warns Isa holders to beware of restrictive transfer conditions

Wed 26th Mar 2008

Abbey has warned consumers looking for a new individual savings account (Isa) to be aware of the restrictive transfer conditions that some accounts have.

It found that at the moment, all the three leading headline rates - from Barclays, Brimingham Midshires and Scarborough Building Society - have restrictive transfer conditions.

Earlier research from Abbey also revealed that one in six Isa accounts do not allow transfers in, while one in 12 do not allow transfers out.

The bank suggests that this could restrict savers' ability to maximise their tax-free allowance, particularly after the cash Isa limit is extended to £3,600 next tax year.

Reza Attar-Zadeh, director of savings and investments at Abbey, said: "With the average transfer balance of Isas at £12,000, savers need to look carefully at the transfer conditions on cash mini Isas."

She noted that by not allowing transfers in, some providers are restricting their customers' access to leading rates.

Earlier today Bradford & Bingley launched a new fixed-rate Isa with an interest rate of 6.25 per cent, which also has restrictive transfer conditions.

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