Martin Lewis issues ISA warning to savers looking to boost returns - 1 'vital' step
Martin Lewis has instructed ISA savers not to skip one important step when trying to boost the return on their savings in 2026. The Money Saving Expert's latest ISA advice includes the best deals at the moment, as well as simple steps people can take to get the most out of the money they have put away. The money genius regularly points out simple tips and tricks to save cash, as well as important steps to take to make sure you're not losing any money.
When it comes to switching your Cash ISA, this is something you might want to consider doing to get the most out of your savings. Cash ISAs are an incredibly popular option for savers, as they can get tax-free interest back on their savings. However, Chancellor Rachel Reeves recently announced a reduction in the Cash ISA limit, meaning people will only get tax-free interest on £12,000 in savings, rather than the previous £20,000. However, Cash ISAs remain popular as they are generally seen as a safer way to save than Stocks & Shares ISAs.
When you are switching your ISA, you should never skip this one step. Lewis, in one of his latest posts on his Money Saving Expert website, said that you should contact your new provider and fill out an ISA transfer form.
He said: "If you want to transfer, never withdraw money from a cash ISA! You'll immediately lose all the lasting tax benefits. Instead, speak to the new provider and fill in an ISA transfer form.
"Your new provider should then sort it all out, including moving the money over for you - keeping your ISA cash permanently tax-free."
People might be caught with this without realising, as they move their money to ISA accounts with higher interest rates. He revealed: "Many old ISAs now pay appalling rates, so check yours now. If they don't come close to the current top picks, you can transfer to boost them, but you must do it correctly. Consolidating new and old cash ISAs into one new shiny ISA makes it much easier to transfer again in future. You can also transfer an ISA without paying any new money in."
"The banks have agreed to a guideline of 15 working days for the transfer to take place, so you should begin to receive interest within this time," he added. "If it goes much over 15 working days, it's worth complaining to the ISA provider to see if it can speed it up, or at least compensate you if the delay means you lose a decent chunk of interest."
When pointing out the best ISA offer at the moment, he highlighted Trading 212's account that pays 4.4% interest on savings.
It can be opened online, and you only have to start with a deposit of 1%. However, Lewis warns that you don't get the bonus on transfers in of cash deposited in previous tax years.