Cash ISAs hit the headlines yesterday with the news that the OFT had announced a number of measures to make cash ISA transfers more transparent.

The measure include a reduction in transfer times from 23 days to 15 and greater transparency over interest rates.

However, mystery shopper research from money.co.uk has revealed the extent to which cash ISA providers are neglecting to give customers all the information available. The survey showed that details about ISA transfers and rates after bonus periods were widely skimmed over.

They are now urging savers to look beyond interest rates and ask the right questions to find the right cash ISA.

The study, which focused on 18 of the top ISA providers, used online and telephone research to assess their effectiveness when it came to equipping consumers with the information required to make an informed choice. 

The key points showed that only half of providers’ websites explicitly stated the interest rate payable after any bonus period, and only four of the 18 providers volunteered information on any bonus or introductory interest rate when contacted by telephone. Online, just half of savings or cash ISA landing pages displayed more than one cash ISA product option.

Chris Morling, MD at money.co.uk said: “As I think many suspected following the super-complaint from Consumer Focus, it seems that the majority of Cash ISA providers could do a lot more. That means giving consumers easy and full access to the information required to choose a Cash ISA that is right for them over the longer term, not just right now.

“Clearly, headline interest rates will always play an important role and there is nothing wrong with offering bonus or introductory rates, provided consumers are fully aware of them before they buy.  However, it’s clear that greater transparency and consistency from providers is required.  In particular, it should be it easier for consumers to assess Cash ISA products based on features, terms and conditions that are common across the market, and which may affect their performance in future.”

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