Savers are being encouraged not to "languish on a low ISA rate" and transfer to a higher earning account as the ISA season gathers pace.
According to Moneyfacts.co.uk, there is growing competition amongst ISA providers to attract new savers, as the number of cash ISA deals accepting transfers has grown in the past year by almost 50 per cent from 183 to 272.
Meanwhile, despite of the Bank of England maintaining the base rate at 0.50 per cent, it has found that the average fixed rate ISA is now paying 3.24 per cent compared to 2.81 per cent in the same period last year.
As the cash ISA limit is set to increase for all savers from £3,600 to £5,100 on 6 April, Darren Cook, spokesperson at Moneyfacts.co.uk said: "With almost 92 per cent of all cash ISAs currently on the market accepting transfers in, there is no excuse for customers to languish on a low paying rate."
Mr Cook suggests that providers are prepared pay a premium to savers who are willing to make a long-term commitment with their money, although he warns savers should be aware that "rates may look a little different in two or three years' time".
"A fixed rate ISA has become the providers' preferred growth area, with the number of available fixed rate ISA deals doubling from 41 a year ago to 84 today. Variable rate deals have only risen from 146 to 155 over the same period," he said, before adding:
"It is important to check with your existing provider to make sure that there are no interest penalties to be paid before you transfer your cash ISA, as this could wipe out any potential gains."
© Fair Investment Company Ltd