ISA rates deemed 'unfair' by 73% of savers Go compare with our comparison table

ISA rates deemed 'unfair' by 73% of savers

04 April 2010 / by Andy Davies

Three out of four savers believe it is unfair for banks and building societies to offer lower rates on ISAs than on other savings accounts because they are tax-efficient, research by Clydesdale and Yorkshire banks has claimed.

In a survey conducted by the two banks, 73 per cent of savers think providers should offer at least the same rate of interest on ISAs as they do on the equivalent taxable savings accounts currently on the market.

In terms of fixed rate savings, the majority of consumers – 75 per cent – are also calling for fair play from providers, saying that the rate offered on fixed rate bonds should also apply to fixed rate ISAs, regardless of the fact that it is a tax-efficient way to save.

Meanwhile, Clydesdale and Yorkshire are also calling on providers to rectify other practices to provide savers with a more transparent system for ISAs, including offering clear rates with no misleading introductory bonuses and making a commitment to meet the deadlines for ISA transfers.

Commenting, Steve Reid, retail director at Clydesdale Bank believes transparency and fairness goes "hand-in-hand".

"The message to banks and building societies from savers is quite clear – ‘play fair on ISAs'.

"Paying at least the same on ISAs as similar standard accounts means that savers get the full benefit of the tax-free status.  Paying less on ISAs than similar accounts undermines them and gives savers a poor deal."

© Fair Investment Company Ltd

 

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', eventAction: 'Account', eventLabel: 'Schroders Monthly High Income' });">Schroders Monthly High Income Fundyes
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', eventAction: 'Account', eventLabel: 'Invesco Perpetual Monthly Income Plus' });">Invesco Perpetual Monthly Income Plus Fund ISAyes
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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
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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
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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
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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
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', eventAction: 'Account', eventLabel: 'Jupiter Corporate Bond' });">Jupiter Corporate Bond Fund ISAyes
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', eventAction: 'Account', eventLabel: 'invesco perpetual high income' });">Invesco Perpetual High Income Fund ISAyes
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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
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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
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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.
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†† Income payments are dependent upon the FTSE 100 Index.

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