Do I need to transfer my ISA before 5 April?

By DAN HYDE

Updated: 09:09 EST, 27 March 2012

Transfers: It's worth moving your money to get a better rate

I have an Isa with a dismal rate and would like to transfer this to a better rate as I have been losing out due to little knowledge of this product.

Do I need to transfer all the cash in to the new provider before the 5 of April then keep it in for a year to get the best return?

Or do I transfer it into the new provider after 5 April? DL, via email

Dan Hyde, savings correspondent at This is Money replies: The good news here is that it really makes very little difference when you transfer.

The rules around Isas are such: you can only pay in to one cash Isa per tax-year. Crucially, a transfer does not count as 'paying in'. You can transfer as many times as you like, whenever you like.

My only tip would be to do so within the few weeks either side of the tax-year end/start on 6 April. This is the annual peak for Isa rates - you'll struggle to find a better deal later this year.

Also, it's worth checking that there are no withdrawal penalties when you transfer. Most fixed-rate deals penalise savers for exiting early. These charges can be worth up to 365 days' worth of interest.

In your case, you say you're earning a miserable rate. It's unlikely that you're tied to a fixed deal.

I'd recommend transferring to a new account as soon as possible if so. From 6 April, you can open a new account elsewhere or, if you've plumped for an easy access account, you may be able to top the pot you've transferred at your new provider.

Your point about leaving it in for a year to get the best return will depend on the type of account you've opted for. You are right to think that most variable accounts need to be transferred every 12 months because they include temporary bonuses that drop off after a year.