Individual savings accounts could come with stringent conditions meaning that Britons would be well served to ensure that any they choose suit their needs, Abbey has said.
According to the high street bank, four of the five so-called "best-buy" individual savings accounts do not allow transfers in. In addition, this is indicative of an overall trend which sees one in five of all such savings vehicles preventing inbound transfers.
The company likens this to the savings equivalent of the recent Carlos Tevez affair, with firms attaching conditions to their transfers.
Rather than contract wrangles and third-party ownership, however, catches attached to transfers within individual savings accounts can include notice periods of up to 30 days and administration fees.
Financial penalties can also be applied, noted Abbey, rather like the one West Ham faced after their part in the Tevez saga.
Reza Attar-Zadeh, head of savings and investments at Abbey, said: "It is disappointing that many of the leading rate cash Isas [individual savings accounts] do not allow transfers in - thereby restricting the tax-free benefits of Isa investing to just £3,000."
Warning over individual savings accounts
Warning over individual savings accounts
Tue, 21 Aug 2007
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