ISA v Regular savings

Consumerist

cyclonebri1 wrote: »

I cannot figure the reason banks will not pay "the going rate" for isa's when the difference is only in the tax paid . . .

I think the banks' argument seems to be that there is more paperwork associated with ISAs.

One could reasonably expect, however, that any additional costs associated with attracting and managing savers' funds should be paid by those who use those funds. i.e. the borrowers. If the additional costs associated with ISAs is spread between all mortgages, it seems to me that they would hardly be noticed. I think, of course, that the banks charge both savers and borrowers.
.