Why don't banks offer ISA's savings rates at the same rate as normal savings?

Nov 20, 2004 1 Replies

Take for example Abbey - they are currently offering savings rates of 7% on their regular saver, which even without a tax break is a good deal. However, if that was done as part of an ISA it would be excellent - OK, lets assume the same restrictions applied to a 7% ISA as to the 7% regular savings account (min/max savings of 20/500 a month, etc), so probably wouldn't be CAT standard - but who cares - I want 7%!


It's only 7% for the first year. After that the money gets transferred to another account paying a much lower rate of interest. This probably isn't much use for an ISA.

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