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Is it time to switch your ISA?

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There is £270 billion held in Cash ISA’S In the UK. Many people will be disappointed that interest rates haven’t risen.

By the end of April this year the average Cash ISA was paying 0.81%, which is well below the current 2.5% rate of inflation.

This means your savings are growing but not at a fast-enough rate to keep up with inflation.

The average Cash ISA is worth almost 1.7% less year on year. And in total Cash ISA savers are over £4 billion worse off compared to last year and there’s also no guarantee Cash ISA rates will rise.

Which? checked over 300 variable instant-access savings accounts and Cash ISAs in the five weeks after November’s interest rate rise. 48% made no interest rate changes. And just one in five passed on the full 0.25% rate rise.

There is however, good news. Innovative ISA’s or ISISA’s are offering much higher rates of return. GPM-Invest can help you as they have done due diligence on some of the best products on the market. These products offer upwards of 7% per year and some pay out quarterly or annually. You won’t lose your ISA wrapper. And transferring ISAs doesn’t count towards your ISA allowance for this tax year.

You can now transfer ISAs from Cash to innovative ISA’S and if you transfer you don’t have to worry about the tax threshold. This is a great way to make your money work harder for you so it worthwhile speaking to GPM-Invest.

Before transferring, you should think about your goals. Investing in innovative ISA’s is usually for the long term so if you need access to your money in the next five years, you might want to consider sticking with the Cash ISA. However, the returns can be much more financially rewarding. If you need to find out more about innovative ISA’s then give GPM-Invest a call.