Switching cash ISAs will become easier and quicker under plans announced by the Financial Conduct Authority (FCA).
The regulator has proposed that cash ISA providers deliver 7-day switching for the majority of ISA transfers from January 2017.
The proposals are the result of a review into competition in the cash ISA market. The market study found that competition was often not working in the best interests of consumers.
Plans to speed up switching in the sector are part of a package of measures aimed to make the cash savings market work effectively for customers.
Other proposals include:
- simplifying language to help consumers understand ISA terms
- making consumers know the interest rate, expiry of bonus rate or maturity of fixed-term accounts
- customers should be aware of which providers pay the lowest rates of interest.
Christopher Woolard, director of strategy and competition at the FCA, said:
“In a good market, providers should be competing to offer the best possible deal.
“Consumers should expect the information they need to shop around to be clear and easy to understand. When they wish to move accounts, they should be able to do so with the minimum of fuss.
“Our package of measures are [sic] all about giving consumers the information they need to make an informed decision about what to do with their savings, and the ability to act on it quickly.”