ISA season kicks off nice and early for savers

Commenting on early moves in the ISA market, Kevin Mountford, head of savings at price comparison site moneysupermarket.com, said: " Many providers are bringing their headline-grabbing cash ISA offerings out much sooner in the year than previously. Their desire to secure more deposits is no doubt due to last year's Northern Rock debacle, which highlighted the need for providers to have substantial deposits. Savers can certainly take advantage of this as we head towards 5 April and the end of the tax year.

" This week, we saw Icesave's Mini Cash ISA enter the market paying 6.1 per cent AER, following hot on the heels of Scarborough Building Society's new Direct Notice ISA, which tops the table at 6.3 per cent.

" The top paying cash ISA of a year ago wouldn't even make today's top 10, showing how keen banks are to lock in your cash as early as possible.

" By starting the rush now rather than closer to April, it will alleviate some of the pressure providers usually face when they have to process so many accounts in such a limited period.

" Savers shouldn’t be blinded by solely the figures. They need to look at the notice period and whether they allow transfers in.

" If you’ve been using your ISA allowance diligently for a number of years, you’re likely to have a tidy sum stashed away that you could transfer into a new, higher-paying account. About half of the top ISAs on the market don't allow you to transfer previous lump sums in, so savers need to read the small print."