Cash ISA savers who opened their account 12 months ago are being warned that they could soon be earning 'next to nothing' in interest when their year long bonus expires if they fail to transfer their savings.
According to research by moneysupermarket.com, the best paying cash ISAs one year ago included a 12 month bonus, such as the Abbey Reward ISA, paying 3.50 per cent AER, but this rate will drop to 1.50 per cent after the introductory bonus has expired.
To avoid 'languishing in a low rate account', the price comparison website is urging savers to review their savings and make an ISA transfer if necessary to ensure they make the most of their tax free allowance.
Commenting, Kevin Mountford, head of banking at moneysupermarket.com says that savers who fail to review their ISA holdings are missing the opportunity to maximise the returns on their savings.
"It may come as a surprise to some that the rates on their accounts can fall so steeply in just a year, but this is the reality of modern day saving. Accounts with bonuses attached tend to be the best way for savers to maximise the return on their capital, however this means that savers need to be vigilant, keep an eye on their rate and not be put off by the prospect of transferring your ISA holding," he said.
Encouraging savers who are keen to transfer the balance of their ISA savings into another provider, Mr Mountford added: "With the deadline for this year's ISA allowance just days away (April 5th), savers have no time to waste."
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