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Reduced choice in transfers in market

Reduced choice in transfers in market

Category: ISAs

Updated: 07/12/2016
First Published: 26/02/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Investors with savings built up from previous years' ISA allowances are being left with reduced choice as to where the best place is to transfer their money into, according to latest research by Moneyfacts.co.uk.

Just three of the top ten variable cash ISAs accept transfers in, compared with five this time last year and nine in February 2011.

Savers who have invested in a variable cash ISA since their conception in 1999 and have built up a savings pot of £50,280, not taking interest into account, will be wracking their brains as to where the best place is for their investments.

The forthcoming ISA season is expected by many savers and finance experts to be a subdued affair, as the savings market remains in the doldrums. A large number of providers have withdrawn or reduced their savings rates over recent weeks.

The Government's Funding for Lending Scheme has been blamed for the issues in the savings market, as participating lenders borrow from reduced Government rates, cancelling out the need to raise funds through the savings sector.

Sylvia Waycot, editor at Moneyfacts.co.uk, said: "The silent withdrawal of transferable ISAs may mean that savers need to rethink how they view ISAs.

"Savers with the largest pots are already being turned away, leaving them either with the same provider as last year, in an account that could be paying peanuts because the bonus has expired or with a new account that is not a best buy."

What next?

Compare the 10 ten variable ISAs

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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