Mar 21 2007
With the deadline for the opening of individual savings accounts (Isas) soon approaching, consumers have been advised to take advantage of the portability of the accounts.
Financial services comparison firm Moneyfacts reports that many Isa providers are offering more complex terms and conditions in an attempt to entice investors, such as bonuses and packaged accounts.
The company notes that many providers may reduce their interest rate after the first year, but reminds savers that the flexibility of the system often enables consumers to move their investment to another provider next year.
Rachel Thrussell, head of savings at the money search engine, said: "As many Isas are freely portable, your relationship with one provider does not have to be lifelong.
"So why not take advantage of the best rate for this year and then decide on a new provider next April?"
She added that Isas are a good means of saving, with potentially good returns that are tax-free, advising consumers to make sure they weigh up all restrictions, notice terms, bonuses and interest rates when choosing an account.
Earlier this month, life and pensions provider Friends Provident reported that a lack of awareness about Isas could prevent Britons from taking full advantage of their yearly tax-free allowance.
