ISA savers 'not checking best rates'

Over three million cash ISA savers are to reduce or stop their regular deposits over the next six to 12 months, a new study has warned.

According to Investec Private Bank, the low level of the Bank of England's base rate is to blame for this decision – highlighting the need for savers to assess the market for the best savings rates.

However, the bank discovered that many savers have failed to check their rate of interest at all over the last year.

It reports that 28 per cent of consumers have no idea how the level of interest they are receiving has changed during the last 12 months.

Linda McBain, head of banking at Investec, said savers had been "hit hard" both by successive cuts to the base rate and by banks and building societies offering high headline rates, only to slash them after an introductory period.

"As with all savings products, we would urge those with larger deposits to switch to ISA accounts paying a consistently competitive rate of return if they want to avoid missing out on hundreds of pounds in interest each year."

On October 6th, the annual ISA allowance for over 50s in the UK increased from £7,200 to £10,200.

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2009-10-13 13:07:48 © Moneyextra.com