A month ago a friend opened a better interest rate mini cash ISA with a local provider.

At the same time he arranged for the transfer of an existing ISA from another bank into this new ISA.

He recently went into the bank to check the transaction only to find that the money had disappeared onto the ether.

Savers are frequently finding that the money disappears from the current provider but doesn’t turn up in their new one for many weeks.

The problem stems partly from the antiquated ISA transfer process with banks still writing each other cheques rather than moving money electronically.

Revenue and Customs guidelines say there is no reason for cheques to be used and they have now written to banks and building societies to remind then of this.

It has been noted that the banks are very happy to phase out cheques as quickly as possible for elderly and vulnerable members of the public who rely on these for payments, but are reluctant to change the system where it suits them.

CHRISTINE CAMPBELL, Eleanor Gardens, Christchurch