Cash ISA bonus expiry prompts savers to check rates and consider switching

Savers who opened cash ISAs with short-term bonus rates at the start of the tax year should check their accounts now: three‑month boosts offered in April have expired in many cases, leaving underlying rates that may be materially lower. Financial website This is Money flagged a cluster of accounts that were promoted with tasty headline rates but applied only temporary boosts, creating the risk that customers who did not monitor their accounts are now receiving a lower return than advertised.

Because the bonuses have lapsed, some customers can improve returns by moving balances to accounts that accept transfers and pay competitive non‑boosted rates. However, transferring an ISA requires following the formal transfer process; withdrawing funds and adding them to a new ISA counts as a fresh contribution and will use up part of the annual ISA allowance.

Several providers currently pay above the Bank of England base rate of 4% and accept transfers, making them options for savers who want to consolidate or switch. Charter Savings Bank’s Easy Access Cash ISA pays 4.26% AER variable, has a low £1 minimum deposit, and permits online transfer requests during application. Interest can be paid monthly or annually and the account is not flexible, so replacing withdrawn funds in the same tax year would use up part of that year’s ISA allowance; the maximum balance is £1.5 million.

Family Building Society’s Market Tracker Cash ISA offers 4.3% AER variable and similarly allows transfers, but the society requires customers to request an application pack or visit its Epsom branch rather than initiating a transfer fully online. The account carries a low £1 opening requirement but enforces a £100 minimum withdrawal and pays interest annually; it is not flexible and has a £250,000 maximum balance.

Ford Money’s Flexible Cash ISA pays 4.18% AER variable and is a flexible ISA, meaning customers can withdraw and replace funds within the same tax year without affecting their allowance. It accepts transfers if notified during the online application or via a transfer form to be submitted within 21 days of opening. Interest can be paid monthly or yearly and the combined maximum across Ford Money accounts is £2 million.

By contrast, some providers are offering larger 12‑month boosts to new customers, but those enhancements generally apply only to new money and not to balances transferred into an account. Trading 212 advertises 4.38% AER variable, which includes a 0.53% boost for 12 months; it has a £1 minimum deposit, no withdrawal limits and is a flexible ISA that pays monthly interest. Plum’s Cash ISA shows 4.35% AER variable including a 1.31% 12‑month boost, but its boost is removed if the balance falls below £100 or if the holder makes more than three withdrawals in a year, and the account is not flexible.

The distinction between boosted deals and transfer‑friendly deals matters for savers planning moves now. Two features determine the attractiveness of any switch: whether the receiving provider accepts transfers and whether the product’s headline rate applies to transferred funds. Many of the most generous time‑limited bonuses are reserved for new customers and do not extend to transferred balances, reducing their appeal as a switching destination for existing ISA savings.

Savers planning a move should notify the new provider that they wish to transfer when applying or soon after opening an account. Where the correct transfer instruction is given, the receiving provider will usually contact the current provider and arrange the transfer, preserving the tax‑free wrapper and avoiding use of the current year’s allowance. If money is withdrawn and paid into a new ISA independently of the official transfer system, that amounts to a fresh subscription and will reduce the saver’s remaining allowance for the year.

Consumers should also check product terms such as flexibility, withdrawal limits, and maximum balances before initiating a move. Flexible ISAs allow same‑year replacement without using allowance; non‑flexible ISAs do not. Other conditions — for example, minimum withdrawal amounts or rules that remove temporary boosts after certain activity — can affect the effective return a saver receives.

Interest rates remain sensitive to changes in the Bank of England base rate and to competitive moves among providers, and short‑term promotional boosts can create a misleading picture of an ongoing yield. Savers who benefitted from three‑month bonus deals in early April should review their accounts, compare transfer‑accepting providers, and use the official ISA transfer process if they decide to move funds. Financial comparison sites and providers’ terms and conditions can help identify which accounts will apply advertised rates to transferred balances and which are restricted to new money only.