People who hold an ISA saving account may not be earning as much interest as they could, new statistics from Moneyfacts.co.uk shows.
This is because ISA savers are potentially missing out on up to £1,300 a year in interest payments because they keep their money in poorly paying accounts.
At this time of year many banks and building societies begin to launch new ISA accounts, in a bid to attract the £5,100 that each saver can invest in these tax-free accounts annually.
However, many of the same banks are unfairly conning their existing customers by running down rates on older ISA plans, and refusing to let customers transfer into the better-paying alternatives.
The research conducted by the data provider website, Moneyfacts.co.uk, found that the average cash ISA return is 1.71 per cent. However, many only pay 0.1 per cent. At the other end of the scale there are ISA savings accounts which offer much better deals, such as Northern Rock’s five-year fixed-rate ISA, which offers an impressive rate of 4.3 per cent.
Michelle Slade from Moneyfacts.co.uk urged savers to check all of the rates for new ISAs to insure they were getting the best. Michelle also advised to make sure they were still getting the best deal on existing savings accounts.
The research also showed that those who have invested the maximum amount into an ISA each year could now have savings of up to £50,000 before interest.
Slade also pointed out that for this group, the rate differences between ISA accounts could make a staggering difference – up to £1,300 a year.