People could be thousands of pounds better off if they take the time to make a simple phone call.
At least that’s what one Martin Lewis fan said after a nifty trick left them £2,330 richer.
The MoneySavingExpert (MSE) newsletter told the story of a reader known as Sandra, and how she decided to move her cash ISA.
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She informed the MSE team her previous ISA was only paying a rate of 1.75%, and this figure is very low in contrast to the current Bank of England interest rate of 4.5%.
For this reason she called her ISA provider and asked to move her cash to another product they offered.
The new cash ISA account came complete with over double her previous one at 4.35%, which equates to an extra £2,330 over a two-year period.
(Image: Ken McKay/ITV/REX/Shutterstock)
The figure even took into account the penalty she had to cough up for leaving her previous cash ISA.
She said: “Another thank you from a very happy reader, as I switched my cash ISA from 1.75% to 4.35% with the same provider.
“I will benefit by £2,330 over two years, even after paying the penalty.
“Not bad for one phone call – thank you.”
Martin Lewis recently told savers many cash ISAs are currently paying “diddly squat”, as a lot only hold an interest rate of under 2%.
In comparison many normal savings accounts pay much more, with several offering more than 3%.
If you have savings stored in a “rubbish” ISA, MSE states you should “ditch and switch” to one that promises to offer a better rate.
(Image: Getty Images/Tetra images RF)
The website says if you want to transfer your cash from one ISA to another then you need to “do it the right way”.
When you move money it’s important not to withdraw it from the cash ISA, as this will result in you losing all the tax benefits of it.
The best thing to do is speak to the new provider and complete an ISA transfer form first.
From here your new provider should be able to make sure everything is handled correctly, and they’ll also transfer the money for you.
If, like Sandra, you simply want to move funds to another ISA with the same provider then all you need to do is ask them how to go about it.
Once arranged it should only take around 15 working days to sort everything out, and you are able to transfer multiple old ISAs into a new one, as long as you notify your provider.
You are also permitted to have several different ISAs as long as you’re eligible, but you’re only able to pay into one each year.