If you opened a Cash ISA in recent years and haven't checked its interest rate lately, you are almost certainly missing out on a better deal. Personal finance expert Rosie Murray-West, writing in Metro's 'Where to Invest' column on December 3, 2025, warns that high-paying accounts often see rates plummet after an introductory period, with some legacy accounts from major high street banks now paying as little as one per cent.
Why You Should Review Your ISA Now
The good news is that you are not trapped. Savers can move their funds to providers offering far superior rates without jeopardising the tax-free status of their money or consuming any of the current year's ISA allowance. The crucial step is to ensure the transfer is done correctly via an official ISA transfer process. "Ensure that the transfer is done via an Isa transfer rather than withdrawing and re-depositing funds," advises Myron Jobson, a personal finance specialist at Interactive Investor. "Doing so would cause you to lose your tax-free benefits."
Step 1: Finding the Right New Account
Begin by researching the competitive ISA market. Not every account accepts transfers from old ISAs, so you must find one that does. Consider what you need: an easy-access cash ISA, a fixed-rate version, or even moving a stocks and shares ISA into cash. Many top-paying cash ISAs do accept transfers. For example, at the time of writing, Chip's easy access cash ISA paid 5.25%, while Close Brothers offered a 4.43% rate on a three-year fixed cash ISA. Remember, transferring a stocks and shares ISA can take longer and may involve charges, while cash ISA switches are typically free.
Step 2: The Correct Transfer Process
Once you've chosen your new provider, open the account and complete their ISA transfer form. You will need details of your old ISA, such as the account number and sort code. Your new provider will then contact your old one to move the funds directly. This is the key action that preserves your tax-free wrapper. Do not withdraw the money yourself.
Step 3: Timing and Your Rights
By regulation, transfers between cash ISAs should complete within 15 working days. Transfers from stocks and shares ISAs can take up to a month. If your transfer exceeds these timeframes, you have the right to complain to the provider. Should you remain dissatisfied, you can escalate the issue to the Financial Ombudsman Service, which can order compensation for poor service.
Protect Your Future Returns
Finally, be proactive. Many attractive rates include temporary bonuses or are fixed for a limited term. Make a calendar note for when the bonus expires or the rate is due to drop, so you can review the market and consider another transfer. Regularly shopping around is the most effective way to ensure your tax-free savings are always working as hard as possible for you.
