Online only cash ISAs are typically paying up to 7.3 percent more than in-branch cash ISA’s. Research from Governor Money across 373 products fond that the average in-branch ISA rate was 2.46%, while the average online only ISA rate was 7.3 percent higher at 2.64%.
The group claims that savers are on average missing out on £18.99 a year in interest by going with in-branch ISA solutions.
Commenting on the findings, Miles Bingham, CEO of Governor Money said: “Savers who overlook online ISAs are missing out on additional interest. We are in a low interest rate environment and for those with an average balance, an online account is great way make your money work harder.
“The internet isn’t just a shop window and place to research the best deals it is also a place make purchases. We have taken this to heart in many areas such as with books and music but when it comes to savings, people still seem reluctant, this is despite the fact that the majority of people are using the internet to research their savings products. It makes sense to take the process one step further and apply online.”