Time to dump your big bank Isa and get a better deal before your rate drops to just 0.2%

Time to dump your big bank Isa and get a better deal before your rate drops to just 0.2%

Savers with large High Street banks now have to transfer their Isa money to get a better deal.

If you opened an Isa with a large bank in previous tax years, your rate has probably fallen to just 0.2 percent.

Even if that's not the case, you can still earn more elsewhere, with top rates ranging up to 1.46 percent.

If you opened an Isa with a large bank in previous tax years, your rate has probably fallen to just 0.2 percent

If you opened an Isa with a large bank in previous tax years, your rate has probably fallen to just 0.2 percent

This is a difference of £ 252 in interest per year if you deposit the full £ 20,000 Isa benefit.

So if you want to quickly open a cash Isa with your current account provider before the end of the tax year, you should now consider switching to a better paying account.

Savers in Halifax Isa Saver Variable currently earns 0.6 percent. But as soon as you have been in the account for 12 months, the bank transfers your money to the Instant Isa Saver and pays a generous 0.2 percent.

Santander Easy Isa and NatWest Cash Isa both pay only 0.2 percent and Lloyds Cash Isa Saver 0.35 percent.

Barclays Instant Cash Isa savers do not do better at best with 0.7 percent, while HSBC loyalty money Isa pays between 0.55 percent and 0.85 percent.

Pursuant to tax rules, you can transfer cash that Isa has built up in previous tax years between providers without penalty. You can split them between as many as you want, and between accounts with a fixed and easy access.

To switch, you just have to choose a new deal and ask the bank or build-up association that offers the deal to make the transfer. Do not withdraw the money yourself because you may reinvest up to £ 20,000 in this tax year.

It is up to every bank and constructive society to accept transfers.

Unfortunately many of the best deals are often not, such as Market Harborough BS Easy Access Isa at 1.25 percent. National savings and investments Direct Isa for 0.9 percent does not accept transfers either.

If your Isa fixed-rate fund expires, be careful not to transfer it before the end of the term. It can mean that you are hit with a hefty fine.

Top easy-access deals that do accept transfer are Kent Reliance Easy Access Isa at 1.46 percent.

Online, Paragon Bank Limited Edition Easy access Isa pays 1.45 percent, Coventry BS Easy Access (online) 2 pays 1.45 percent and Leeds BS Limited Edition Online Access 11 pays 1.46 percent.

Both Coventry and Leeds rates include a bonus interest rate for the first year, so you may have to switch again next year.

In the High Street, Yorkshire BS pays 1.46 percent and nationally 1.4 percent, but both limit admissions to only one per year.

Leeds Double Access Isa allows two annually and pays 1.3 percent. Skipton Cash Isa Tracker pays up to 1.36 percent with a limited number of withdrawals.

High Street does not handle bonuses or withdrawal restrictions include Virgin Money at 1.16 percent and Coventry BS at 1.15 percent.

Your switch must be completed within 15 working days.

sy.morris@dailymail.co.uk

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