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18 July 2006
Financially savvy Britons are increasingly making the most of their money by switching Isas in order to get a better rate, research from Intelligent Finance has revealed.
Around one in five adult Isa holders in the UK have changed providers or are intending to do so by the end of the year, in what could be a record year for the accounts, with 13 million new Isas expected to be taken out.
Older Isa holders aged between 55 and 64 are the most likely to have switched providers, with 28 per cent having done so, compared to an average of 11 per cent.
However, despite the growing popularity of Isa accounts, around 24 per cent of holders are oblivious to the fact that they can switch providers.
Many savers feel that putting money into an Isa is the equivalent of locking away cash and throwing away the key, believes Intelligent Finance, with providers using headline deals to attract customers then relying on customer apathy when rates slide.
Customers should keep an eye on Isa rates and choose providers who have consistently strong rates, advises senior analyst at Hargreaves Lansdown, Meera Patel.
"It is easy; you might require one form or a letter of instruction. There should be more awareness," she commented.
If you're concerned about the effect that interest rates may have on your credit commitments order your credit report and find out where you stand financially.
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