Martin Lewis fan shares how tip made her £2,330 better off - and all she had to do was make one phone call
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A Martin Lewis fan has shared how they are to be £2,330 better off after taking the consumer champion’s advice - and making just one phone call. “Sandra” shared her success story, which saw her recently decide to move her cash ISA, in the Money Saving Expert (MSE) newsletter.
She told the MSE team that her previous ISA was only paying an interest rate of 1.75 per cent, which is very low compared to the current current Bank of England interest rate at 4.5 per cent. So Sandra decided to call her ISA provider and move over her money to another product from the same firm.
The new cash ISA account had an interest rate of more than double her previous one at 4.35 per cent. It means she will benefit from an extra £2,330 over the next two years, even including the penalty she had to pay for leaving her previous account.
“Another thank you from a very happy reader, as I switched my cash ISA from 1.75 per cent to 4.35 per cent with the same provider,” said Sandra. “I will benefit by £2,330 over two years, even after paying the penalty. Not bad for one phone call, thank you.”
Mr Lewis has previously warned savers that many cash ISAs are currently paying “diddly squat” as a lot of them have an interest rate of under 2 per cent. while a lot of normal savings accounts were paying much more at over 3 per cent.
For those with money in a “rubbish” ISA, the Money Saving Expert website recommends that you “ditch and switch” to one that’s paying a better rate. But it added that you should never withdraw money from your cash ISA if you’re moving it, as you’ll immediately lose all of its tax benefits.
Instead, you should speak to the new provider and fill in an ISA transfer form first. Your new provider should then sort it all out, including moving the money over for you.