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Quarter of savers unaware of their cash ISA rate

Quarter of savers unaware of their cash ISA rate

Category: Savings

Updated: 30/03/2010
First Published: 30/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
A quarter of savers are unaware of how much the interest rate on their cash ISA pays, new research has revealed.

Twenty five per cent of adults with cash ISAs admitted to not knowing the rate of their cash ISA in a survey conducted by The Co-operative Financial Services (CFS), while just 28 per cent said they were entirely confident of the interest their product offered.

Consumers can currently apply for high interest cash ISAs which offer rates of up to 3.50 per cent, with minimum deposits starting from just £1.

Many savers who have not changed their account in recent years may find that their current account pays a minimum rate of interest.

However, with recent Moneyfacts.co.uk research finding that more than nine in ten cash ISAs are currently accepting transfers in, the time could be right for savers to switch.

"It's worrying that people have invested their money in a product but they don't know what the interest rate is," commented Rod Bulmer, managing director, retail for CFS.

"This shows the benefit of a fixed ISA as savers know the rate of interest they will receive and can be confident that it won't change throughout the fixed period."

Those who have yet to use their 2009/10 ISA allowance have just days left to do so. With the tax year to finish on 5 April, and the Easter weekend imminent, savers have been urged to sort out their applications as soon as possible.

From 6 April, the ISA limits will be enlarged for everybody, meaning £10,200 can be invested, half of which can be placed in a cash product.

Find the best savings account for you - Compare cash ISAs

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