Bank of Scotland has joined Halifax in improving the way it handles cash ISAs.
Launching the ISA Promise on 5 January, Bank of Scotland said for customers transferring a cash Individual Savings Account (ISA) it would pay interest from the day it receives a completed transfer application.
The ISA Promise also includes a commitment to keep customers informed about switching their cash ISA to Bank of Scotland, part of the Lloyds Banking Group, when a fixed rate or temporary ‘reward’ rate is coming to an end and to keep customers informed about their cash ISA interest rate,
Rates on cash ISAs remained consistently low in 2010 but with a lack of information provided to customers on the rates their savings were earning, prompting criticism of a lack of transparency in the banking sector when it comes to interest rates on cash ISAs.
Halifax, which is also part of the Lloyds Banking Group, announced it was launching an ISA commitment to treat customers more fairly in October 2010. New Office of Fair Trading guidance means cash ISA transfers should aim to be completed withing 15 working days and banks have agreed, from early 2012, to publish interest rates clearly on all cash ISA statements .
Head of Bank of Scotland savings products, Flavia Palacios Umana said: “Cash ISAs are one of the best ways to build up a savings nest-egg. It is important to have savings you can fall back on in times of need so we want you to be able to make the most of your tax free savings allowance.”
The Bank of Scotland ISA Direct Reward account currently pays a 2.8 per cent variable rate.
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