Prime Minister, Rt. Hon. Gordon Brown MP, speaking in a Saga webchat has revealed that the Labour Party would force banks to speed up the transfer of ISA funds between providers to encourage competition and treat savers fairly.
Senior No. 10 sources say the move is likely to be a key Labour Manifesto pledge, part of a move to 'reinvent banking' after the credit crisis.
Saga understands savers will have a unique, portable ISA number. Transfers to better interest rates will be able to be made quickly and easily, a little like transferring phone service provider while keeping your phone number. They would also compel providers to pay interest from the moment funds were transferred.
Also if re-elected, Labour would ensure that savers are explicitly told of interest rate changes on their account and what interest rate will be paid to them when introductory rates expire.
Saga's Paul Green commented: "Saga questioning has elicited potential good news for millions of ISA savers. Saga has been treating people properly by backdating interest on cash ISA to the application date and keeping them informed of rate changes. It is about time the major banks and other institutions stop scamming the savers of middle Britain and follow in Saga's footsteps."
For more information please contact the Saga Press Office on 01303 771529.