JEFF PRESTRIDGE: The market of Isa is broken despite a strong financial picture … and that is a disgrace

Jeff Prestridge says the UK now has a "dysfunctional savings market that is largely not in the consumer's interest."

Although the country may be in a better place than many thought it would be ten years ago when a bad financial crisis threatened to lower the banking system, there have been many losers.

Step forward of the savers of the country who depend on the interest of their different deposit accounts and Cash Isas to make ends meet.

They have seen their savings income drastic and struck. Not only because of a falling base rate that was 5 percent and higher before the financial crisis of 2008, to 0.25 percent to just less than a year ago.

Jeff Prestridge says the UK now has a "dysfunctional savings market that is largely not in the consumer's interest."

Jeff Prestridge says the UK now has a "dysfunctional savings market that is largely not in the consumer's interest."

But as a result of the fact that banks – and many building societies – have to concentrate all their energy on restoring the balance sheets to something that looks like good health, saving costs and relentlessly removing branches.

A restorative process helped by governments prepared to lend them buckets of cheap money. Indeed, so ?? s bargain basement financing that it suppressed their need to go out and attract savers with eye-catching offers.

The result? We now have a dysfunctional savings market that for the most part does not work in the interests of the consumer – a message that you, as readers, regularly remind me of in e-mails (keep sending them in).

Overwhelming evidence of how broken the market has become is the opposite of our special research on Cash Isas, the mainstay of the portfolios of most savers. Tax free and in the case of the accounts we have focused on: variable interest rates, easy access to Cash Isas.

As our exclusive report shows, only a handful of savings organizations have fully benefited from the two basic rate increases since November last year for savers in these countries.

Most of the institutions have only praised the rates, while a handful has stubbornly on their hands and refused to do anything – except to assess the boost that puts their economy at the forefront (profit).

As our exclusive report shows, only a handful of savings organizations have fully benefited from the two increases in the base rate since November last year to savers in these Isas.

As our exclusive report shows, only a handful of savings organizations have fully benefited from the two increases in the base rate since November last year to savers in these Isas.

As our exclusive report shows, only a handful of savings organizations have fully benefited from the two increases in the base rate since November last year to savers in these Isas.

Shameful? Yes. Can not be defended? Yes, although some such as those at the high table of the Association of Building Associations differ. As far as solutions are concerned, I urge all Cash Isa savers this weekend to review their interest in their money – and to transfer them if they can get a better deal elsewhere.

You can not be comfortable with changing provider because of a long-term relationship with a specific bank or constructive company – perhaps a branch with a branch in your city that you would like to use to carry out all your transactions.

Good, but you might be surprised to find that the Isa you have money in pays a lower interest rate to an alternative offered by the same provider. Ask the question the next time you visit. On condition, of course, that the branch was not only closed – Royal Bank of Scotland announced a further 54 closings a few days ago.

Other Cash Isa savers who have no loyalty to a particular provider – and who like to conduct online transactions – have to shop to find the best or better rates.

Our research also proves without a doubt that it is now time for regulatory intervention. The Financial Conduct Authority – the supervisory superpower of the savings market – has already considered the idea of ​​a "basic" savings ratio that would apply savings institutions to all easy access to Cash Isas. A kind of minimum rate allowed. The sooner this affects this idea, the better because, as the evidence we have presented today demonstrates, the Cash Isa is broken and urgently needs to be re-started.

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Remaining on questions of fairness and regulatory intervention, Ofgem has to be on the back knocked for detailing how it will help 11 million energy consumers give a better deal with the introduction of a price cap. The exact level of the upper limit, which will apply to households at & # 39; default & # 39; rates of bad value, has yet to be determined. But supervisor Ofgem suggests that its introduction (by the end of the year) could reduce the annual energy bill by about £ 75.

Although the savings may not be as great as Prime Minister Theresa May promised they would be before Ofgem put the cap – she wanted £ 100 – it's a step in the right direction. As welcome, a movement like a & # 39; basic & # 39; savings account for Cash Isas. But the 11 million households that are on expensive rates should not wait until the cap weaves its magic. Like many oppressed Cash Isa savers, they should now shop around. Better deals are plentiful.

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