Ipswich Building Society takes on the banks in the battle over Nicer ISAs

31 March 2010

Recent news of ISA savers being offered pitiful rates of interest has been met with consternation by the public, and a local building society which has spoken out against the low rates available. Research has shown that the average interest rate on a cash ISA stands at just 0.41%, despite many providers offering headline grabbing rates on short-term bonuses.

Paul Winter, chief executive, Ipswich Building Society said; “Whilst it is understandable that interest rates for savings have dipped, the news that the average interest rate is just 0.41% is surprising. ISAs were designed to encourage and reward those that saved, yet these rates offer little incentive. It is also concerning that some providers are using short term bonuses to offer a headline rate as it leads to confusion for customers, many of whom are unaware that their rate may change dramatically at the end of their bonus period.”

Ipswich Building Society currently offers two ISA products, the instant access Premier ISA offering a tax-free interest rate of 1.40% and the 2 year Fixed Rate ISA 13 which has a higher fixed rate of 3.00%, available from 5 April 2010 until April 2012.

Paul added: “As a mutual building society we listen and respond to our members’ needs in a way which I think is different and better than the banks. Our rates reward members for saving, and I would urge all ISA investors to make sure they are getting the best rate, and service they can.”

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