Stop! Isa thieves campaign

bagsacash

Les you have hit the nail on the head. Barclays is a great example. I opened their Golden isa last year, this year I have to transfer to another bank because the Golden Isa 2 does not accept transfers and the Golden Isa 1 is now paying a lower rate, just more unecessary paper work and cost and hassle for the consumer.

So the bank / Building Society write to you about three weeks before your fixed-rate matures. They tell you what options they have on offer, so that you can look around for a better rate if you want to; they also tell you where they will put your money if they don't hear from you by the maturity date.

Sounds pretty simple to me. Where are the "Crazy" rules and the "rings of fire"?

Sounds like a lot more effort and cost than is necessary - I take it you work for the bank or you would like too?

Why not at the end of the account term have a computer automatically rename the account to the next best paying isa. Less cost to the bank less hassle to the customer more money for better rates and profits.

The customer then knows his/her bank has their best interests at heart. But we know the banks wont do this because they are in the business of fleecing customers for what they can, banks would rather earn their money in a dishonest way, rather than treat their customers faily.

fairtrade

Hello, I may be missing something here. But isn't fixed rate, fixed term exactly what is says it is. Once the term has expired, the fixed rate expires as well. I have 2 fixed rate ISAs & 2 fixed rate bonds, I know the expiry date for all 4 and will be speaking to the providers 4 weeks before the expiry dates so I can maximise interest rates for my money.

premierfella

Fairtrade,

I think that the provider may still able to drag their heels in the example you provide if the transfer timing starts from the date the fixed term expires. Which is why I personally think dealing with the transfer times would solve most of the current issues relating to cash ISAs.

Regarding complaints that market leading cash ISAs (e.g. Barclays Golden Isa 1) become substantially less than market-leading after a relatively short period, this is surely no surprise to the majority of us here?

If additional restrictions on cash ISAs were implemented (e.g. no introductory rates, reverting fixed interest cash ISAs to the provider's best variable cash ISA on expiry, etc), I could hazard a guess at what would happen to the interest rates on "best buy" cash ISAs - they would fall. Those providers already currently providing consistent interest rates on their cash ISAs would be unchanged (apart from attracting additional depositors). I'm not sure I see how those who shun the "consistent but lower interest" providers would see any significant benefit?

oldagetraveller

Yawn. Post 15 reported.

fairtrade

premierfella wrote: »

Fairtrade,

I think that the provider may still able to drag their heels in the example you provide if the transfer timing starts from the date the fixed term expires. Which is why I personally think dealing with the transfer times would solve most of the current issues relating to cash ISAs.

Regarding complaints that market leading cash ISAs (e.g. Barclays Golden Isa 1) become substantially less than market-leading after a relatively short period, this is surely no surprise to the majority of us here?

If additional restrictions on cash ISAs were implemented (e.g. no introductory rates, reverting fixed interest cash ISAs to the provider's best variable cash ISA on expiry, etc), I could hazard a guess at what would happen to the interest rates on "best buy" cash ISAs - they would fall. Those providers already currently providing consistent interest rates on their cash ISAs would be unchanged (apart from attracting additional depositors). I'm not sure I see how those who shun the "consistent but lower interest" providers would see any significant benefit?

This may be the case, but it will all depend on the provider. My ISAs are not with the original providers are were tranfered without any undue delay. I did have a problem trying to open an ISA with Alliance&Leicester and after six months moved the money elsewhere and accepted their compensation.

bagsacash

Hello, I may be missing something here. But isn't fixed rate, fixed term exactly what is says it is. Once the term has expired, the fixed rate expires as well.

And the government ISA's were introduced to promote long term saving, the banks have turned them into a pig circus were customers are left having to remove their savings after only 12 month sometimes sooner because of a drop in rates, and to add insult to injury customers have to wait up to a month or longer for the transfer. But it does not stop there, the customer must trowl the net looking for the best rates and do some research to see if the bank has an history of dropping rates shortly after opening the account.

Once the account is up and running a customer is to spend the next 12 months visiting the account or banks site to find out if the rates remain the same.

The banks have made a mockery of the whole system and all to fleece the customer.

Every day you are not earning interest why your money is in transfer you are being robbed by your bank.

bagsacash

Yawn. Post 15 reported

:rotfl:

dunstonh

And the government ISA's were introduced to promote long term saving

Actually they were not. The initial concept didnt actually see the banks being used to provide cash ISAs. It was for the supermarkets to have on their checkouts so people could put their change into them to build up over the year tax free as a sort of holiday fund or Christmas fund. This is why the limit was initially so low.

The supermarkets at the time couldnt implement the system cost effectively. The Govt then turned to the banks who said they wouldnt do it at the original cash ISA limit as it was unprofitable for them. So, that was increased a bit.

The S&S ISA and insurance ISAs were seen as being used for the long term money.

parcival

Please can we knock this ludicrous thread on the head!!!!

bagsacash

ISAs were introduced on 6 April 1999, replacing the earlier Personal Equity Plans (PEPs) and Tax-Exempt Special Savings Accounts (TESSAs), which continued to exist only for money already invested in them and for interplan transfers. ISAs were explicitly designed to appeal to a broader range of the population than these earlier products, which were sometimes claimed to be exclusively for the benefit of the middle classes. Other channels for tax-privileged savings exist that also pre-date ISAs, notably the National Savings and Investments, which is a state owned bank offering a range of non-ISA tax free accounts (in addition to its own ISAs.)

http://en.wikipedia.org/wiki/Individual_Savings_Account