A report by consumer champion Which? highlights the problems savers face on transferring money from from Individual Savings Account to another.
The report highlights inadequate explanations of the rules that need to be followed for savers not to lose out on tax free acounts.
The study, reported by Walletpopuk, highlights the lacklustre rates of interest on Isas. Personal finance website Moneyfacts puts the average rate of interest of an Isa at 2.27%. it also claims that ’clear and accurate’ information is needed if the tax relief isn’t to be lost. Nationwide was the top dog on this while HSBC was worst.
Sarah Brooks, head of financial services at Consumer Focus, said: “Banks seem to be making a simple product unnecessarily complicated because of poor service, inaccurate or unclear information and inefficient systems which delay switching.
’People may have their life savings in a cash ISA and would rightly be concerned about being advised incorrectly. The Financial Services Authority must continue to monitor how banks market, sell and manage cash ISAs and intervene when consumers are losing out. At a time when the size of bonuses and profits are in the news, it is inexcusable that banks should fall down over something as basic as not training their staff properly.’