ISA alert - savers need to keep an eye on last year's top deals

Analysis from moneysupermarket.com shows that savers should not be complacent with their ISA cash pots. With many of 2009's top ISAs having a year long bonus attached to them, savings that remain in these accounts could soon be earning next to nothing in interest. 

The interest rates on each of the top five ISAs from one year ago includes a 12 month bonus which, when removed, makes for a far less competitive product. moneysupermarket.com is urging savers to review their ISA holdings to ensure their tax free allowance is not languishing in a low rate account.

Kevin Mountford, head of banking at moneysupermarket.com, said: "If you fail to review your ISA holdings on a regular basis, you are likely to lose out. Tax free ISAs present the British public with the opportunity to maximise the returns on their savings. If you leave your hard earned cash in low paying accounts, you are, quite simply, missing the point.

"It may come as a surprise to some that the rates on their accounts can fall so steeply in just a year, but this is the reality of modern day saving. Accounts with bonuses attached tend to be the best way for savers to maximise the return on their capital, however this means that savers need to be vigilant, keep an eye on their rate and not be put off by the prospect of transferring your ISA holding. In short, take advantage of the bonuses offered, then switch.

"Whilst you are only allowed to open one cash ISA per year, you can transfer the balance of your existing ISA holdings to another provider as often as you wish, though some providers won't allow you to transfer existing balances into some of their new offers. There are some good deals out there this year, including Santander's Flexi Cash ISA at 3.5 per cent and Barclays' Golden ISA at 3.1 per cent, and with the deadline for this year's ISA allowance just days away, savers have no time to waste."