Top Cash ISAs for transfers

By lovemoney.com , Jul 11, 2012
Filed under: Savings & ISAs

Not all Cash ISAs allow you to transfer existing ISA funds in. These ones do....

Here at lovemoney.com HQ, we regularly bang on about the importance of opening a Cash ISA. After all, these accounts are a great way for you to save tax-free.

Need to know: Savings

Of course, if you're one of our many savvy readers, you probably already have one. But even so, that doesn't excuse you entirely.

After all, do you know what rate of interest your ISA is currently paying? And are you sure it's competitive?

Need to know: Savings

If not, we'd suggest finding out now. And if it's not paying a decent rate of interest, it's time to move those funds elsewhere.

Unfortunately, there's just one snag with this. Sometimes you'll find that the very best interest rates are for Cash ISAs which don't allow transfers in from existing ISAs, meaning you can only open them with fresh funds – a bit of a pain to say the least.

For a round-up of the top ISAs for the 2012/13 tax year, regardless of restrictions, head for the The UK's best Cash ISAs.

Here we're going to look at the best Cash ISAs that do allow transfers in.

Easy access
The table below highlights the best easy access Cash ISAs that allow transfers in:

Provider and account	Interest rate (AER)	Minimum investment	Access	Need to know
Santander Direct ISA (Issue 9)	3.3%	£2,500	Online, branch, phone	2.8% variable rate bonus for first 12 months.
Post Office Premier Cash ISA	3.01%	£100	Online, branch, phone	1.26% fixed-rate bonus for first 18 months.
Marks & Spencer Money Advantage Cash ISA	3%	£100	Online, branch, phone	Variable interest rate.
Principality Building Society E-ISA (Issue 4)	2.85%	£1	Online	1.05% variable-rate bonus for the first 12 months.
Virgin Money Easy Access Cash E-ISA	2.85%	£1	Online	Choose from monthly or annual interest.
Halifax ISA Saver Online	2.75%	£1	Online	2.5% fixed-rate bonus for the first 12 months.
Nationwide Online ISA (Issue 5)	2.75%	£1,000	Online	Nationwide customers only. 1% bonus until 31 December 2013

So how do these rates compare to those for Cash ISAs that don't allow transfers in?

When looking across the market, the Santander Direct ISA is top for both, so is an option for those wanting to move money over and savers with new funds. If you've got new money to stash away into an ISA, this account is shortly followed by a 60-Day Notice ISA from the Coventry Building Society which pays 3.25% followed by accounts from the Cheshire Building Society, ING Direct and Market Harborough Building Society which all pay 3%.

It's also worth noting that many of the above Cash ISAs have a bonus rate. This means that once that bonus has expired, the interest rate on your ISA may drop dramatically, so it's important to take note of when the deadline is and move your savings elsewhere at this point.

Fixed cash ISAs
If you'd prefer to tie up your savings for a year or more, you can usually earn a higher rate of interest with a fixed rate cash ISA. So here are the best ones currently on the market that accept transfers in:

Provider and account	Interest rate (AER)	Term	Minimum investment	Need to know
Halifax ISA Saver Fixed	4.15%	Five years	£500	Online (view only), phone, branch
Halifax ISA Saver Fixed	4.10%	Four years	£500	Online (view only), phone, branch
Santander Two Year Fixed Rate Major ISA	4%	Two years	£1	Receive an additional 0.10% one off bonus if Rory Mcilroy wins one of eligible golf 'Majors' before the ISA matures
BM Savings Two year Fixed Rate ISA	3.65%	Two years	£1	Manage by post.
Halifax ISA Saver Fixed	3.5%	Three years	£500	Online (view only), phone, branch.
Santander One Year Fixed-Rate ISA	3.5%	One year	£1	Online (view only), phone, branch.
Lloyds TSB Two Year Fixed Rate Cash ISA	3.2%	Two years	£3,000	Online, phone or branch access.
Virgin Money One Year Fixed Rate Cash E-ISA	3%	One years	£1	Access is online only.

So, are any of these accounts market-leaders? Well, the good news is, if you're prepared to lock up your funds in a fixed rate cash ISA, you won't lose out if you're hoping to transfer funds in. That's because all of the above ISAs are market-leading. Hurrah!

And, although no-one knows for sure where interest rates are heading, we think the one- or two-year ISAs remain slightly stronger as you'll earn a decent rate of interest but you're not locking your money up for too long. But the choice is yours.

This is a classic lovemoney article that is regularly updated.