Lloyds, NatWest, Barclays, Santander slammed over new rule that's 'optional'

Lloyds, NatWest, Barclays, Santander slammed over new rule that's 'optional'
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Major banks have been accused of blocking savers from top interest rates. As the Cost of Living crisis continues in Birmingham and beyond, major UK banks are blocking customers from accessing top savings rates, it has emerged.

Major financial providers have been accused of failing to implement an Isa reform introduced nine months ago. High street lenders including Lloyds, Natwest, HSBC and Barclays have not updated their systems to allow savers to open multiple cash Isas simultaneously.

Santander and major building societies Coventry and Leeds have also failed to implement the reform. Rachel Springall, of comparison site Moneyfacts, said: “Those savers who want to split their cash across multiple Isas with the same provider will be left disappointed if providers don’t adjust their systems to accommodate them.

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“Savers invested with the biggest banks will not feel too encouraged to explore the perks of spreading their investment unless they move their money elsewhere. Staying still may also see them miss out on better returns with other providers who are working harder to entice Isa deposits.”

And speaking out herself, consumer champion Jane Hawkes told The Telegraph: "People aren’t being given ample opportunity to make the most of their money. A lot of people are missing out on putting money into Isas because of this."

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Lenders including Lloyds, Natwest, HSBC and Barclays have failed to update their IT systems to allow savers to open multiple cash Isas at the same time, the newspaper reported. Ms Hawkes said: “It’s disappointing. It deters people from taking out the Isa in the first place. You’re having to choose between a better rate or easy access.

"It’s one click too many. If you’re going to bring in a new facility, you need to make sure the IT can support it. But restricting people to one Isa is not a fit-for-purpose service. The change was meant to make things easier.”