Cash ISAs can be a great way to grow your savings tax-free, no matter what tax band you're in. But, simply because an account is an ISA, it doesn't necessarily mean that you're getting a good interest rate. Particularly on older accounts, you may well find that the rate you're getting could have dwindled – in some instances considerably.
There are a couple of good reasons why you'd do a cash ISA transfer:
All cash ISAs have to allow you to transfer your money to another provider. However, there may be a penalty for transferring out - particularly on fixed rate ISAs - and not all providers will let you transfer in previous ISA pots.
Before transferring, be sure to weigh up whether you’ll earn more interest by moving (and paying the penalty), or staying put.
Once you have completed the transfer form, you don't need to do a thing. Some ISA providers will pay you interest on the money you wish to transfer from day one.
If the transfer takes longer than 15 working days, your old ISA provider must compensate you by paying the interest rate offered by the new ISA.
Do not close your existing ISA or withdraw the money. You must follow the specific ISA transfer process.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.