Isa customers 'should transfer for new deal'

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Isa customers 'should transfer for new deal'

Thu 25th Feb 2010

Consumers who are unhappy with their Isa product should begin to look for a better deal, according to Moneyfacts.co.uk.

Many Isa providers are now allowing consumers to move their balances to a new account, with the numbers accepting transfers increasing from 183 to 272 in the past year.

With the average level of interest offered on fixed-rate Isas increasing from 2.81 per cent to 3.24 per cent in the previous 12 months, consumers who think they may get a better level of interest elsewhere are being encourage to explore the option.

Darren Cook, spokesperson for Moneyfacts.co.uk, said: "With almost 92 per cent of all cash Isas currently on the market accepting transfers in, there is no excuse for customers to languish on a low paying rate."

However, he recommends checking with the current Isa provider first to make sure there are not any penalties levied when changing to a different product.

Finding a new deal may be important to those who are trying to save, as Moneyfacts.co.uk announced that savings rates are being eroded by an average of 2.92 per cent each year for basic rate tax payers.

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