People should resist the urge to ditch their cash individual savings accounts (Isas), one expert has warned.
Research by uSwitch.com has found that 4.3 million people are planning on closing such savings accounts as interest rates fall .
However, Rumina Hassam, personal finance expert at the firm, advised people to think carefully before moving away from the tax-free savings product.
"Ditching one of the few tax friendly government offerings may not be the best course of action for savers," she said.
Interest rates will not stay low forever and when they start to rise again cash Isas will look very attractive once more, Ms Hassam added.
Those who do decide to ditch the account should be aware that they will not be allowed to put all the money back in as the allowance is only valid for the current tax year, she stated.
Recently, David Kuo, head of personal finance at money website Fool.co.uk, suggested parents open savings account for their children to help give them a financial head start in life.
Isa warning to savings account holders
Financial Services > Saving Accounts > News
Isa warning to savings account holders
Tue, 17 Feb 2009
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