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30/03/2012 15:05:40

One week to go

There is just one week left in which those looking to boost their savings can take advantage of this year's ISA allowance.

MoneySupermarket.com reports that the average rate for fixed-rate ISAs is currently 0.47 per cent higher than the easy access cash equivalent at 3.77 per cent, which is leading to increased demand for these products.

Anyone selecting a fixed-rate product for their savings should, however, be aware that a financial penalty may be incurred if access to the funds is required before the end of the term.

Kevin Mountford, head of banking at MoneySupermarket, also urged savers to ensure they take care if they decide to transfer funds from their current ISA into a higher-paying account.

"Make sure you follow the ISA switching rules otherwise your savings could lose their tax free status," he said.

Nationwide recently revealed that people with savings in cash ISAs are losing out on a potential £500 million in interest by not maximising the £5,340 allowance for the current tax year.