Remember existing Isa savings, consumers urged

Although many people will be shopping around for an individual savings account (Isa) in which to put their tax-free allowance for this year, consumers have been advised not to forget about old savings.

Some savers could have more than £33,000 in tax-free savings due to eight years' worth of Isa savings and up to £9,000 of Tessa contributions, according to Rachel Thrussel, head of savings at finance site Moneyfacts.co.uk.

Although many best buy Isa accounts will not accept transfers and just under half are open for this year's subscriptions only, there are still good deals to be found and investing the previous eight years' mini cash Isa allowance (£24,000) at 5.75 per cent would net a yearly return of £1,380, she advised.

Ms Thrussell stressed that it was important for consumers to make sure that they were getting the best rate on all of their Isa accounts, both past and present.

She said: "Transferring accounts is simple and your new provider will do all of the legwork for you - but don't make the mistake of taking the transfer process into your own hands as closing the account to transfer the funds over will invalidate your previous tax free allowance."

The amount of money that can be invested in an cash Isa is to be increased by £600 a year from April 2008, due to changes in last month's Budget.

Insurances Limited “Individual Savings Accounts are easy to compare online so the web is a great place to start.”