Are 15 million Isas not paying enough interest?
Have you got an Isa? Have you? HAVE YOU? You don't have to tell us, but you might be interested in this article, if you can be arsed reading it after you've finished wiping up your confused tears brought about by seeing the paltry amount of interest you've earned in the statement that has just been sent out to you.
A lot of savers will be angry, saddened or confused (or all three) when they see how little their Isa is making them.
Some savers have found that their return on an Isa has been as little as £28 on savings of £25,000. Compared to the £802 that it would have earned this time last year, that's not exactly great news.
The campaigning organisation Consumer Focus estimates the average cash Isa is paying just 0.41%, and reckons 15 million account-holders could be missing out on £3bn a year in interest.
However, all is not lost. You can move some/all of your money invested during previous tax years into a better-paying account.
Firstly, you need to make sure you're not locked into your current Isa deal. If that's the case, then start shopping around for an Isa that pays a better rate.
Manchester Building Society's Premier Isa Issue 6 is currently paying 3.01% from £1,000 and Lloyds TSB's Two-Year Fixed-Rate Cash Isa currently forks out over 3% to those transferring several years' worth of Isa money.
What is key is that, if you are accepted for a new Isa, you need to ask your new provider to do the transfer for you. If you withdraw the money yourself, you'll lose out as it will be considered 'new money'. A comprehensive guide can be found here.
Andrew Hagger of Moneynet.co.uk says savers should not lose out completely. "Providers will pay interest up to the date the old account is closed and the new account is opened, so you're not going to lose out in between," he says.
Providers haven't exactly been great at keeping people informed about changes but the good news is that, as of this month, customers must be given advance notification of any material reduction in the interest rate on a cash Isa, plus advance notice of the end of any bonus or introductory rate.