HALF of cash ISA savers have never changed their provider despite recognising the benefits of switching other financial products, research shows.
A poll commissioned by peer-to-peer property lender Relendex found that while 82 per cent of UK adults prioritise shopping around for the best energy or insurance deals, 48 per cent of cash ISA savers have never moved their money.
Those that have changed their car insurance provider estimated they saved on average £415.20 per year.
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For home insurance switchers, the average was £303.60 per year.
But Relendex said much bigger savings can be made by moving from a cash ISA,.
The research found that those with the £17,000 typically held in a cash ISA and earning average rates of 0.7 per cent will be receiving just £119 a year on average.
In contrast, Relendex said that £17,000 could earn 5.75 per cent annually in an Innovative Finance ISA portfolio, or £850 a year.
“It is very concerning to see the huge amount of money sitting in cash ISAs often earning paltry returns,” Paul Sonabend, executive chairman at Relendex, said,
“It is clear from the research that UK adults prioritise saving money by switching utilities and policies such as their car insurance and mobile phone providers over spending time picking the best cash ISA to invest in. This is a great failure.
“As demonstrated, if savers are happy to spend hours a year shopping around for the best deals on their other household expenditure, it would really be worth their while to spend more than just 20 minutes a year looking at their ISAs.
“By not doing this UK savers are missing out on higher returns as well as the incredible tax efficient opportunities offered by alternative ISA products.”
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