While the Bank of England Base Rate remains unchanged, more ISA savers are ditching variable rate ISA products in favour of fixed ones, according to recent research.
The Bank of England cut the Base Rate for interest to 0.5% back in March 2009 - at which point, according to Leeds Building Society, almost three times as many ISA savers chose their variable products rather than fixed rate ISAs. Now the majority of ISA savers prefer a fixed rate product: in March this year, 57% held a fixed rate product compared to 43% who had a variable rate account. Leeds Building Society have also reported that the overall popularity of Cash ISAs among savings accounts has also grown since 2009.
In March 2009, 24% of savings products held with the Society were ISAs; in March this year, thus had risen to over 35%.
Kim Rebecchi, Sales & Marketing Director at Leeds Building Society concluded:
‘Every adult saver should have an ISA – over time they have been seen to become a perk for the better-off but whatever your level of savings, an ISA should always be your first choice of savings account because of the tax-free interest.’
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