The Office of Fair Trading investigated the market for tax-free deposits. The result is that there will be a new policy which will reduce the time of transfer to another account by over 7 days. The change from 23 days to 15 working days for transfer processing to occur will take effect at the end of the year on December 31, 2010.
The idea is to allow savers to transfer their funds more quickly into better paying accounts allowing a gain on better interest rates sooner. In addition the interest will start being paid no later than 2 days after the funds are received and interest rates will be clearly marked on customer statements to increase customer education about their individual savings account plan.
This change is expected to bring savers millions of pounds in extra interest overall.