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savers abandon cash isas

Published: 20/02/2009

Interactive Investor International (web) – 20th February 2009

 


Falling interest rates, combined with the need for the extra money and the belief that better rates can be found elsewhere, will lead the majority of savers to call on their funds, according to research by uSwitch.com.

 

With the average cash ISA balance at £2,200, it is feared that a total of £9.5 billion could be withdrawn from cash ISA’s.  However, experts have urged savers to stick with their accounts as low rates will not last forever.

 

Andrew Hagger, a spokesperson for Moneynet.co.uk agrees: ‘It’s easy to see why savers are turning their backs on these once much-loved savings accounts, but people shouldn’t act in haste and withdraw their money especially if they’ve been saving since ISA’s were introduced back in April 1999. 

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Last Updated: 11-02-2012