ISA switch forgetfulness

To work an ISA like a pro you’ve got to live by your wits and remember to switch accounts when the appointed time draws in.

And apparently millions of ISA afficionados are missing out by not switching accounts when the tax-free bonus ends, according to a consumer group.

Research carried out for Consumer Focus found that this was the scenario for two-thirds of people who have opened an ISA with one in four ISA savers claiming not to know if their account included an introductory bonus and a further third claiming they didn’t know when it expired.

Oliver Morgans, financial services expert at Consumer Focus, said: ‘Around one in three of us has a cash ISA, so millions of people are likely to be losing money by not switching when their bonus rate ends.

‘Unfortunately it seems that banks use higher interest rates to lure customers in and then aim to cash in on their customer's inertia.

‘Sadly ISA customers have to watch banks like a hawk if they are to get the best deals. With consumers getting a paltry return as low as 0.1% on some accounts, our advice to savers is to check your rate and if you are not happy, vote with your feet and switch to an ISA that pays more.’

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