Cash ISA Bonus Rates

Much in the same way that a bank or other financial institution will offer customers incentives to try to attract more business, ISA providers also offer bonus rates. Providers know that the higher rates they offer, the more likely you will be to choose them for you needs. But, those bonus rates will only last for a certain amount of time.

The bonus rates that providers use to entice you into opening your ISA account with them are short term. You may get the higher rates for a year, but some providers only offer them for six months. And, at the end of that time, your rates could be drastically reduced.

While it’s a bad thing when your rates get reduced, it’s a good thing that there’s always a different provider offering a better rate. If you want to make the most your savings and earn a higher rate at a fairly constant pace, you will have to switch providers from time to time.

When you do find a provider that is offering the best cash ISA it’s crucial that you allow the transfer to be handled by either your current provider or the new provider. Never under any circumstances should you close one ISA to open another one. By closing out your ISA you will lose the tax free status that your savings has.