ISAs on target to meet transfer deadline goal

Banks and building societies are on target to meet the industry’s aim of ensuring that over 85% of cash ISA transfers are completed within seven working days.

In fact, a report released by the Building Society Association (BSA) reveals that between 1 January and 30 September 2019, 92% of cash ISA transfers were completed within the seven working day target. This is good news for savers as it allows them to move money between ISA accounts quickly, helping them to get the best rates available.

Research by Moneyfacts.co.uk shows that the average rates on easy access, two year and five year fixed rate ISAs have all fallen in the past 12 months. The average two year fixed rate ISAs saw the biggest fall year-on-year, from 1.41% to 1.18%, while the average five year fixed ISA rate also saw a sharp drop, decreasing from 1.94% to 1.62%. Easy access ISAs fell from 0.94% to 0.89% during the same period. Saying this, the fall in ISA rates is in-line with the savings sector in general and as a whole ISAs are still offering some highly competitive rates with some easy access ISAs matching rates being offered on non-ISA easy access accounts.

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “ISAs may still remain in the forefront of savers’ minds thanks to their tax-free benefits despite the launch of the Personal Savings Allowance (PSA) in April 2016, which dulled their shine. Still, savers may find these a desirable investment to protect their hard-earned cash from the taxman over the longer-term – particularly higher-rate taxpayers who fear the scheme could be pulled with little notice in future.

“Savers comparing ISAs can find some attractive options, especially on easy access ISAs, where the top rates are on par to those on standard savings accounts outside of an ISA wrapper. Those who are hoping to transfer their ISA may be pleased by this latest research from the BSA to find that transactions are done quickly, which is encouraging if they were concerned about delays.”

UBL UK is currently offering the best ISA rate in our chart with its 5 Year Fixed Rate Cash ISA paying 2.09% gross on maturity. Savers looking to lock their money into a shorter term can get the best rate from on its 24 Month Fixed Term Deposit Cash ISA. Within the easy access ISA chart