Isa users 'oblivious to current savings interest rate'

A quarter of UK consumers have no idea what savings interest rate their Isa is currently paying, it has been reported.

Research conducted by Co-operative Financial Services CFS points to an alarming trend, given that 92 per cent of Isa savers use a cash account.

Just 28 per cent of savers said they were 'very confident' in knowing the current rate of interest they are receiving.

Rod Bulmer, managing director of retail for CFS, said the study highlighted the benefits of a fixed Isa, as savers know the rate of interest they will receive and can be confident it will not change throughout a set period.

"It's worrying that people have invested their money in a product but they don't know what the interest rate is," he stated.

Last month, research conducted by the Clydesdale and Yorkshire Banks indicated that 75 per cent of savers believe they should be able to place their entire tax-free savings allowance in a cash account.

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2010-04-01 13:42:10 © Moneyextra.com