AWD Chase de Vere supports plans for fairer Isa system

Consumer Focus's decision to complain about Isa 'bait pricing' practices has been welcomed by a leading financial advisory firm.

Patrick Connolly, head of communications at AWD Chase de Vere, said his organisation "fully supported" any attempts to improve access to the best savings rates within the Isa industry.

He commented: "Cash Isa providers often offer attractive headline interest rates so that they feature at the top of the 'best buy' tables.

"When they have taken in the amount of money they want, they reduce interest rates and rely on consumer inertia so the money stays with them."

Mr Connolly noted that the transfer process is long and complicated, while many of the best deals are not available to Isa transfers.

This puts off savers moving from a poor account to a better one, he stated.

Mr Connolly said that since stocks and shares Isa transfers are often completed in a matter of a few days, "there is absolutely no reason why cash Isa transfers cannot be the same".

The 2009-10 tax year ends on April 5th 2010, after which Isa savers will be able to start using their new annual tax-free allowance of £10,200.

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2010-04-01 13:41:26 © Moneyextra.com