Mar 17 2008
Abbey has warned UK consumers that their individual savings accounts (Isas) could be subject to a variety of troublesome terms and conditions.
Based on research by Moneysupermarket, the banking group has suggested that almost ten per cent of all the Isas currently available in the UK require fees or a notice period before exits are allowed.
Many people use an Isa as a way of saving for children and Abbey has made clear that even some of the most popular Isa deals on the market do not allow account holders to transfer in funds after a certain period of time.
Reza Attar-Zadeh, director of savings and investments at Abbey, commented: "With the average transfer balance of Isas at £12,000, savers need to look carefully at the transfer conditions on cash mini Isas.
"By not allowing transfers in customers cannot benefit from a leading rate and are restricted to the tax-free benefits to just £3,000 this year, and £3,600 next."
A report from Alliance & Leicester recently suggested that a majority of adults in the UK will miss out on this year's potential for tax-free savings afforded by Isa investments.
