The Mail on Sunday

Switch that earns you ten times more

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MOST of the big banks are currently paying more interest on their easy access cash Isas than on equivalent non-Isa accounts.

But experts say big bank cash Isa savers should not stay put – they should transfer their balances to a provider paying far superior interest rates.

According to data from rate scrutineer Savings Champion, a NatWest Cash Isa customer is currently receiving paltry interest of 0.1 per cent – equivalent to £20 of annual interest on £20,000 of savings. Yet if they were to transfer their Isa to Paragon Bank (triple issue 8) paying 1.2 per cent, they could boost their annual interest by £220 – provided they are comfortabl­e with the fact that only three withdrawal­s are allowed per year in the Paragon account.

Halifax Isa Saver Variable Saver pays 0.2 per cent interest – more than the bank’s equivalent instant access account Everyday Saver which pays 0.15 per cent interest. Yet transferri­ng to Paragon still makes financial sense. Of the big banks, Santander’s eIsa (managed via mobile banking or online) is the most attractive easy access cash Isa, paying 0.7 per cent (0.8 per cent if you are a ‘select’ Santander customer).

This is far better than the 0.25 per cent it pays on its equivalent eSaver account, but the annual interest of £140 does not stand up to Paragon’s £240.

‘Shopping around always pays when looking for best cash Isa rates,’ says Savings Champion’s Anna Bowes.

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