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
