A Martin Lewis fan has revealed how after one phone call they were able to be £2,330 more financially better off. The most recent newsletter from the Money Saving Expert shared a success story from a reader named Sandra, who decided to switch her cash ISA.
She told the Money Saving Expert team that her previous ISA was only paying a rate of 1.75% which is very low compared to the current Bank of England interest rate of 4.5%, reports the Mirror.
Due to this she decided to call her ISA provider and move over her money to another product from them. The new cash ISA account had an interest rate of over double her previous one at 4.35% - this means she will benefit from an extra £2,330 over the course of two years.
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This also included the penalty she had to pay for leaving her previous cash ISA. Sandra 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."
The money guru also warned that many cash ISAs are currently paying "diddly squat". He adds that a lot have an interest rate of under 2% - whilst normal savings accounts were paying much more with a lot over 3%.
For those trapped in a ‘rubbish’ ISA, Martin Lewis advises that you ‘ditch and switch’ to ISAs with better rates.
How to move from one Cash ISA to another
MoneySavingExpert.com says that if you want to move your money out of one cash ISA to another then you will need to "do it the right way".
If you are moving money, then you should never withdraw it from your Cash ISA as you'll immediately lose all the tax benefits of it.
Instead, you should speak to the new provider and fill in an ISA transfer form first, and your new provider should then sort it all out, including moving the money over for you.
If you want to do what Sandra did and transfer to another ISA with the same provider then you could contact them and ask about the process.
Your provider should then inform you of the process.
The transfer should take around 15 working days to complete.
You are able to transfer multiple old ISAs into a new one but you will need to inform your provider.
You are able to have multiple different ISAs if you are eligible for them, however, you can only pay into one every year.
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