Give the boot to last year’s top Isa deals

SAVERS who opened a cash Isa 12 months ago need to transfer — because that once top rate has fallen to almost nothing.

Some 130 Isa rates have been chopped since the start of the year.

Just 12 months ago, leading deals paid as much as 1.65 pc. But some came with a 12- month bonus, which will now disappear. It could leave you with a rate of 0.5 pc at best.

Others that did not come with a bonus have simply cut rates.

Among top payers this time last year was BM Savings Isa Extra 9, which paid as much as 1.65 pc.

Santander Direct Isa Saver 6 paid 1.6 pc, Halifax Isa Saver Online 1.55 pc and Halifax Isa Saver Variable 1.5 pc.

All had a bonus where the rate drops to 0.5 pc after a year — or for Halifax Isa Saver Online customers, an even worse 0.25 pc.

At Santander, you will earn 0.5 pc on balances up to £10,000 and 1 pc on higher amounts.

NatWest and Britannia, which did not pay a bonus, have cut rates from the 1.5 pc on offer 12 months ago. Savers in NatWest Cash Isa earn just 0.5 pc on balances up to £25,000 and 1 pc on larger balances, while Britannia’s Select Isa 5 rate is down to 1.1 pc.

You are allowed to transfer cash Isas built up in previous tax years between providers without penalty — and split them between as many as you want and between fixed- rate and easy- access accounts. The only thing you can’t do is move part of the money you put into it in the current tax year (which started on April 6).

If you want to move this before April 5 next year, you have to move all or nothing.

But it’s up to each bank and building society whether they accept transfers from other providers into their accounts.

Often, the best deals don’t — such as National Savings & Investments Direct Isa or High Street-based Skipton Bonus Cash Isa, both at 1.5 pc.

In the High Street, Barclays Instant Cash Isa pays 1.49 pc — but you need £30,000 to earn this rate. Virgin Money Defined Access Isa pays 1.41 pc and Yorkshire BS Triple Access Isa Saver 1.35 pc, but limit the number of withdrawals you can make each year.

Top deals with no restrictions include Barclays Instant Cash Isa at 1.39 pc on £ 15,000 plus, or 1.29 pc on £1,000 or more, along with Post Office Premier Isa at 1.4 pc. The Post Office deal includes a bonus for 18 months, after which the rate drops to 0.65 pc.

On fixed-rate deals, you earn 1.7 pc with Shawbrook Bank or 1.65 pc with Virgin Money and Aldermore Bank.

If you tie up your money for two years, best rates include 1.95 pc from Shawbrook or 1.85 pc with Kent Reliance and Aldermore. In the High Street, Skipton BS pays 1.75 pc and Barclays 1.71 pc.

You can earn 2 pc with Yorkshire BS and its offshoots Chelsea, Barnsley and Norwich & Peterborough building societies, but you have to leave your money in for three years.