Isa providers get transfers up to speed

Cash Isa customers are benefitting from significantly faster transfer times and fairer treatment since the Office of Fair Trading's intervention in 2010 – and providers are battling for their business with a flurry of new deals. The OFT has found that 93% of all cash Isa transfers carried out in 2011 were completed within 15 working days. This compares to transfer delays of more than five weeks for a third of customers when the watchdog Consumer Focus conducted a survey in March 2010. It calculated that the delays and confusion about Isa rates meant savers could be missing up to £3bn a year in interest. But now if delays occur cash Isa providers are following industry guidelines that require the new provider to backdate interest either to day 16 of the transfer process or to the date on the cheque, whichever is earlier. All providers are also publishing the interest rates on their cash Isa statements. The Financial Ombudsman Service said it has seen an increase in the number of complaints relating to cash Isas in the past two years, but most complaints now relate to interest rates rather than transfer delays. Consumer Focus submitted a super complaint of behalf of savers to the OFT following its research, which resulted in an investigation of the industry and the guidelines issued to banks and building societies. Sarah Brooks, director of financial services at Consumer Focus, said: "Our advice would be for savers to check their rate and if they are not happy move their money. At a time of relatively low rates, proactively switching is usually the only way to make sure your money is working as hard as it can. "It is unfortunate, but loyalty rarely pays with Isas and if consumers haven't moved their savings for a while they are unlikely to be getting the best returns. Shockingly, interest levels of 0.5% or lower are common." The highest paying instant access and one-year fixed-rate cash Isas are being sold by Santander, which has a poor track record on customer service in general and Isa transfers in particular in 2010. The bank pays 3.3% on balances of £2,500 in its instant access account, the Direct Isa issue 9, while the one-year fixed-rate account pays 3.5%. Its two-year fixed-rate account pays 4% on deposits from £1. All accounts allow transfers in. John Wren, director of customer experience at Santander, said: "We've made major improvements in service quality and processes over the past two years across our entire range, including Isa transfers. "We have invested heavily in our people too, moving our call centres back to the UK and hiring an additional 1,100 customer-facing staff. It is our intention that, now and in the future, the customer experience we provide is remembered for the right reasons." The highest paying accounts for three-, four- and five-year terms with transfers in all come from the Halifax, paying 4.25%, 4.35% and 4.5% respectively. The bank, which has just put up rates on the three- and four-year Isas, is also offering a one-year fixed-rate at 2.25% and a two-year fixed-rate at 3.7%. NatWest is paying preferential rates to customers transferring money into its cash Isas, which are 3.35% for one year, 3.9% for two years and 4.2% for three years. For the latest cash Isa rates check out the Guardian's money deals page .