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Switch reminder for cash ISA savers

Switch reminder for cash ISA savers

Category: Savings

Updated: 13/04/2011
First Published: 13/04/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

ISA savers have been urged to put a reminder in their diary for April 2012 to switch their cash ISAs to the best rates available.

As the dust settles on another hectic ISA season, savers who have taken out a cash ISA have been told to check the small print of their accounts for bonuses.

Many of the attractive rates offered by banks and building societies include a bonus which expires after one year and sees the underlying rate which can be as low as 0.5% come into play.

Recent research by Consumer Focus suggests almost a quarter of ISA savers are in the dark as to whether they have a bonus rate.

One in three cash ISA account holders with an introductory rate admitted they were unsure if it had expired.

Although many people have the majority of their savings tied up in ISAs, the average interest rate cash ISAs currently pay is less than 0.5%.

A third of adults have a cash ISA, to the tune of £172 billion.

However, with the best cash ISA rates available reaching up to 3.5%, many savers are missing out on millions of pounds in interest each year by not switching their account to one with a better interest rate.

Even those who do switch often fail to make the most of their money each year by not switching their account again before the attractive 'teaser rate' they signed up to comes to an end.

If you haven't reviewed your cash ISA rate in the last 12 months, take the time to check it now.

How does it compare with the cash ISA rates on offer in our best buy charts?

If you're receiving a lower rate than what is offered elsewhere, then switching to another cash ISA has to be considered.

Competitive cash ISAs are available from well known names such as Nationwide, Barclays and Halifax.

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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