MSE News: Cash Isa providers 'failing' to give accurate advice

Since when have cash ISA providers even "given advice?"

Failed to "answer questions correctly" might be more accurate. And a list of the questions asked of the providers might have been useful in the article.

Typically the questions weren't listed in the original article either.

Basically this boils down to the usual "bank staff, on the whole, don't know what their employer does" non-story.

Banks have given out poor quality information on cash ISAs for years. It is correct to highlight that point. However, they do not provide advice unless you use an adviser. Most of the time its a bank clerk with limited training and knowledge giving out information only.

And a list of the questions asked of the providers might have been useful in the article.

Which? are very good at that. I recall a mystery shop they did a couple of years back where they went on to say that x number of advisers didnt meet standards. Yet it turned out that they were classing spelling mistakes as a failure and it was their desired standard and not a regulatory standard they were using as a measure. None of that was in the initial press release but got leaked later.

Enquiring about ISA totals I was recommended to use up my Equity ISA's. Young lad didn't know they charged commission and expenses.

So do cash ISAs. The difference is explicit charging vs implicit charging and you really wouldnt want to send a young unqualified bank clerk down that conversation.

According to the Guardian the questions were
How do I transfer my Isa?;
Are there rules on how much I can transfer?;
Can I leave some money with you and transfer the rest to a different Isa?;
Can I transfer my cash Isa to a stocks and shares Isa?

It'd be interesting to see how Which? marked the third question since this is dependent on the bank's/BS's own T&C.

AirlieBird wrote: »

It'd be interesting to see how Which? marked the third question since this is dependent on the bank's/BS's own T&C.

It also depends on whether the ISA is the one being subscribed to in the current tax year or not.

AirlieBird wrote: »

The questions were

And your source for this information?

How do I transfer my Isa?;

As the source or destination bank? The answer will differ. See next question for why "You can't" could be a perfectly correct answer.

Are there rules on how much I can transfer?;

At first blush, a silly question, since the T&C's of the destination bank will typically override any that HMRC have. For example "Yes, you can't" would be a perfectly valid answer if asking about a specific product that didn't accept transfers. Or "you can't for X months" for a term ISA.

Can I leave some money with you and transfer the rest to a different Isa?;

Again, T&C's may play a part in the answer. HMRC will allow partial transfers of any portion of previous years' contributions (but not the current years',) the banks themselves may not allow partial transfers out.

Can I transfer my cash Isa to a stocks and shares Isa?

It'd be interesting to see how Which? marked the third question since this is dependent on the bank's/BS's own T&C.

As is the first. And the second.

I got the vague impression that there were more than four questions, but only four were asked of each bank. And in isolation, the questions presented above can have more than one correct, and possibly contradictory, answer.

I'm sure the only acceptable answers, for Which?, however would be:

1) Ask the destination bank to initiate the transfer.
2) No.
3) Yes for previous years' contributions, not for this year's.
4) Yes.

And any deviation from the above would be 'marked' wrong judging from DH's reply up at #4