Isas 'should offer the same interest rates as other accounts'

UK consumers believe Isas should offer the same savings interest rates as on other accounts, a new study has indicated.

Research conducted by Clydesdale and Yorkshire Banks found that 73 per cent believe banks and building societies "should play fair" and pay at least the same rate.

Where fixed-rate Isas and fixed-rate bonds of the same term are concerned, 75 per cent said the same level of interest should be available.

Steve Reid, retail director at Clydesdale Bank, said consumers were sending a clear message to the banks and building societies.

He commented: "Paying at least the same on Isas as similar standard accounts means that savers get the full benefit of the tax-free status.

"Paying less on Isas than similar accounts undermines them and gives savers a poor deal."

Mr Reid added that transparency and fairness "go hand-in-hand" - claiming this is what banking services consumers are looking for.

From today Tuesday April 6th, all adult savers can place £10,200 tax-free in their Isa accounts every year.

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2010-04-06 13:12:00 © Moneyextra.com