ISAs could prompt store wars

THE INTRODUCTION of Individual Savings Accounts next year could trigger a new round of supermarket wars as stores launch loyalty cards linked to ISAs, according to the chief executive of the Co-operative Bank.

Mervyn Pedelty will tell the Co-op movement's national "parliament" in Lincoln today that one of the best ways of encouraging people to save will be to link a tax-free savings element to a loyalty card scheme.