Savers get savvier

A record number of ISA savers are intending to switch providers to get a better rate, according to new ICM research commissioned by Intelligent Finance.

7% of people who've taken out an ISA in the last few years - almost 900,000 savers - intend to transfer provider in the next year. This is almost four times the number of people who intended to switch in 2004 2%.

A further 7% of those who've opened an account in the last few years say they've already switched from their original provider, more than double the number of switchers in 2004 3%.

More people than ever before are aware that they can switch ISA providers. When questioned, four in five people were aware they could switch, which is a 5% increase from the previous year.

When it comes to ISA switchers, those approaching retirement are savvier than any other age group. More than twice as many 55-64yr olds plan to switch providers this year 16%, compared to the national average 7%.

Mark Parker MD of Intelligent Finance makes the point that an ISA provider isn't necessarily for life, and the message that you can move your money is getting through to savers.

"Better still, increasing numbers are voting with their feet and moving their money elsewhere to get a better deal. To get a consistently competitive offering, an ISA with a guaranteed rate ensures peace of mind regardless of changing interest rates," he adds.

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2007-02-19 10:25:42 © Moneyextra.com