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Multiple cash Isas not adding up for savers

Green Box | 15:01 Wednesday 14th March 2018

One in five over-55s (19%) has five or more cash Isas, a new study has found.

Research by Charter Savings Bank has found that less than half of savers aged over 55 (48%) know exactly how much is in these accounts and actively manages their savings.

The specialist bank warned that multiple cash Isas were not adding up for savers, who were risked leaving their money to stagnate in low interest rate paying accounts.

A fifth of those unware of their cash Isa balances (20%) estimated that they had between £10,000 and £30,000 in their accounts.

A further 15% estimated that they had more than £30,000 in their accounts.

Paul Whitlock, director of savings at Charter Savings Bank, said: “It can be easy for savers to lose track of accounts once they've been opened, and the longer they've been open, the more likely it is that something might have changed.”

Some 28% said that they found it annoying managing different rates, while a quarter (24%) did not like the administration side of handling multiple accounts and remembering log in information.

“Savers could be missing out on better returns if they forget about their accounts,” added Paul.

“With Isa allowances increasing over the years, it's possible for savers to have substantial deposits in them, so it makes sense to take action.”

Over a third of savers aged over 55 with multiple Isas (36%) said they chose to open more than one account because of the different rates on offer.

“It's easier than ever to transfer cash Isas and so it makes sense to make the most of the simplicity to bag a better rate,” Paul concluded.

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