ISA savers `could be earning just 0.1%`

More than one million ISA (Individual Savings Account) holders could be earning just 0.1% interest on their balances, reports The Financial Times.

According to research group Defaqto, most of the biggest banks and some building societies offer cash ISAs that pay near-zero interest rates, even on particularly high balances.

The findings may be of concern to people who had previously relied on their savings interest to supplement their income.

A spokesperson for debt management company Gregory Pennington said: "People may automatically assume that ISAs pay out a high interest rate compared with other savings accounts, but the situation is not always so clear-cut.

"Savings can offer valuable protection against debt and other financial difficulties, but it`s important that savers `shop around` and ensure that they are getting the best interest rates available."

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