ISA providers keep customers in the dark, says money.co.uk Go compare with our comparison table

ISA providers keep customers in the dark, says money.co.uk

30 June 2010 / by Lois Avery

Cash ISAs hit the headlines yesterday with the news that the OFT had announced a number of measures to make cash ISA transfers more transparent.

The measure include a reduction in transfer times from 23 days to 15 and greater transparency over interest rates.

However, mystery shopper research from money.co.uk has revealed the extent to which cash ISA providers are neglecting to give customers all the information available. The survey showed that details about ISA transfers and rates after bonus periods were widely skimmed over.

They are now urging savers to look beyond interest rates and ask the right questions to find the right cash ISA.

The study, which focused on 18 of the top ISA providers, used online and telephone research to assess their effectiveness when it came to equipping consumers with the information required to make an informed choice. 

The key points showed that only half of providers' websites explicitly stated the interest rate payable after any bonus period, and only four of the 18 providers volunteered information on any bonus or introductory interest rate when contacted by telephone. Online, just half of savings or cash ISA landing pages displayed more than one cash ISA product option.

Chris Morling, MD at money.co.uk said: "As I think many suspected following the super-complaint from Consumer Focus, it seems that the majority of Cash ISA providers could do a lot more. That means giving consumers easy and full access to the information required to choose a Cash ISA that is right for them over the longer term, not just right now.

"Clearly, headline interest rates will always play an important role and there is nothing wrong with offering bonus or introductory rates, provided consumers are fully aware of them before they buy.  However, it's clear that greater transparency and consistency from providers is required.  In particular, it should be it easier for consumers to assess Cash ISA products based on features, terms and conditions that are common across the market, and which may affect their performance in future."

To compare ISA deals click here »

© Fair Investment Company Ltd

 Product NameISA OptionIncome YieldMore Info
', eventAction: 'Account', eventLabel: 'Schroders Monthly High Income' });">Schroders Monthly High Income Fundyes
See Details
', eventAction: 'Apply Now', eventLabel: 'Schroders Monthly High Income' });">More Info >
The Schroder Monthly High Income Fund aims to generate a high income, whilst not compromising capital, by investing in a diversified basket of fixed income securities. 100% Discount off Initial Charges.
', eventAction: 'Account', eventLabel: 'Invesco Perpetual Monthly Income Plus' });">Invesco Perpetual Monthly Income Plus Fund ISAyes
See Details
', eventAction: 'Apply Now', eventLabel: 'Invesco Perpetual Monthly Income Plus' });">More Info >
Popular monthly income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. 100% discount on initial charges.
', eventAction: 'Account', eventLabel: 'Henderson Strategic Bond Fund' });">Henderson Strategic Bond Fundyes
See Details
', eventAction: 'Apply Now', eventLabel: 'Henderson Strategic Bond Fund' });">More Info >
The aim of this fund is to deliver a quarterly income to investors by investing in higher yielding assets, which will include most types of fixed interest securities such as high yield bonds, investment grade bonds and government gilts, as well as having the ability to invest a proportion of the fund in equities. Income is paid to you quarterly.
', eventAction: 'Account', eventLabel: 'Schroders Income Maximiser' });">Schroders Income Maximiseryes
See details
', eventAction: 'Apply Now', eventLabel: 'Schroders Income Maximiser' });">More Info >
The Schroder Income Maximiser Fund ISA aims to deliver a target income yield of 7% pa, also providing potential capital growth. Income is paid to you quarterly. 100% Discount off Initial Charges.
', eventAction: 'Account', eventLabel: 'Invesco Perpetual Corporate Bond' });">Invesco Perpetual Corporate Bond ISAyes
See details
', eventAction: 'Apply Now', eventLabel: 'Invesco Perpetual Corporate Bond' });">More Info >
This highly popular fund aims to achieve a high level of overall return with relative security to capital. Income Paid to you twice yearly. Up to 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Artemis Income ISA' });">Artemis Income ISAyes
See details
', eventAction: 'Apply Now', eventLabel: 'Artemis Income ISA' });">More Info >
One of the leading UK Equity Income Funds. The Fund managers hunt out companies with strong free cash flow and solid balance sheets. Income is paid to you twice yearly. 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Jupiter Corporate Bond' });">Jupiter Corporate Bond Fund ISAyes
See details
', eventAction: 'Apply Now', eventLabel: 'Jupiter Corporate Bond' });">More Info >
The Jupiter Corporate Bond aims to achieve a high level of income with the opportunity for capital growth, through mainly investing in fixed interest securities. Income is paid to you twice yearly. 87.5% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'invesco perpetual high income' });">Invesco Perpetual High Income Fund ISAyes
See details
', eventAction: 'Apply Now', eventLabel: 'invesco perpetual high income' });">More Info >
One of the UK's most popular income fund ISAs the Invesco Perpetual High Income has delivered consistently good long term returns through a variety of market conditions. Income is paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'MandG Corporate Bond' });">M&G Corporate Bond ISAyes
See details
', eventAction: 'Apply Now', eventLabel: 'MandG Corporate Bond' });">More Info >
The M&G Corporate Bond Fund is a conservative ‘blue chip’ sterling fund that aims to produce a higher return than UK government bonds. Income is Paid to you Quarterly. 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Jupiter Merlin Income' });">Jupiter Merlin Income Portfolioyes
See details
', eventAction: 'Apply Now', eventLabel: 'Jupiter Merlin Income' });">More Info >
The Jupiter Merlin Income Portfolio fund aims to achieve a high and rising income with some potential for capital growth. Income Distributions are made to you quarterly. 95% Discount off the Standard Initial Fund Charge.
* See details.
†† Income payments are dependent upon the FTSE 100 Index.

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.