£158bn tax free savings have never been switched

Research carried out on behalf of first direct has found that 62 per cent of the UK population with an ISA have never transferred it to another provider.
 
The average pot for each UK ISA holder will reach over £10,000 by the end of the 2012/2013 tax year.  first direct's research suggests that over £158bn of ISA savings, which could potentially find a home at a higher rate elsewhere, are sitting in their existing accounts.
 
The main reason for staying put was that savers were happy with their current rate (48 per cent), however a quarter said that they had ‘never got round' to switching and nearly one in ten didn't even know they were able to transfer their ISA balance.
 
Andy Forbes, Head of Product at first direct commented: "It's surprising that such a large number of Cash ISA savers have never switched their account and even more so that many don't realise they can transfer their balance.
 
"first direct have a market leading 3.0 per cent AER Cash ISA, specifically targeted at savers who've built up a tax free balance over the years and want access to a great rate for their hard-earned cash."
 
The younger age group (16-24 years) were most likely to say they'd never transferred their ISA, with 93 per cent claiming that they'd never switched.  At the other end of the spectrum it was those aged 55+ who had switched the most, however nearly 60 per cent of that age group said they'd never moved provider either.
 
It seems that men are more financially informed than women when it comes to their Cash ISA with almost twice as many women saying they didn't know they could transfer their ISA to another provider.  Men were also more aware than women that ISA limits will increase from 6 April 2013 (17.5 per cent of men vs. 10 per cent of women).  However, this also illustrates that the vast majority of men (82.5 per cent) and women (90 per cent) were unaware of the imminent change.
 
Regionally, Londoners tend to have over 14 per cent more in ISA savings than the UK average, just over £11,500, whereas the South West comes bottom with an average balance of just over £9,100 (nearly 10 per cent less than the national average).  When it comes to switching their ISA savings the Northern Irish are the most likely to make a move (53 per cent), unlike those in the South West where 65 per cent said they'd never transferred their ISA savings to another provider.  However, whilst those in London may have the bigger balances, over 60 per cent have never transferred their ISA savings.