Abbey comments on ISA statement

Rezah Attar-Zedah, Abbey's head of savings and investments comments on the Economic Secretary, Ed Balls' statement on ISAs:

"We are very pleased that ISAs are to become less complicated. Our ongoing research has shown that customers find them too complex so anything that encourages understanding is great news.

"Being able to move cash ISAs to Stocks and Shares ISAs is most welcome as many customers have built up a balance in their cash ISAs that they would like the potential to grow further. Our stocks and shares ISAs that come with a capital guarantee are very popular with such customers.

"Being able to move PEPs to ISA wrappers is further good news. Many customers find it difficult to keep track of their finances, so this will help them manage their savings and investments.

"Another way customers can do this is be moving all their ISAs to one provider. Only 9% of cash ISA providers have switched their ISA provider (source: mintel 06). Abbey offer a free service which transfers all customers' ISAs for them into one Abbey ISA.

"We would welcome a review of the £7,000 limit to encourage customers to save more. Confirmation that CTF will roll over into an ISA is good news as it will encourage people to save into these accounts, knowing that they will continue to be tax efficient when they mature.

"We look forward to hearing further detail within the full announcement."