Millions of savers miss out on extra £185 yearly by keeping old cash ISAs

A recent Skipton Building Society study found £85.5 bn locked in instant-access cash ISAs opened between 2000 and 2019, with an average return of 1.94%. By contrast, current market rates approach 3.90%, which would add roughly £185 of interest per year to the average £9,469 balance. The society’s survey of 2,000 adults revealed many people rarely reassess their savings products, despite a 37.5% rise in cash ISA subscriptions in 2024-25, driven by high Bank of England rates.

Skipton’s Head of Savings, Alex Sitaras, and Moneyfacts finance expert Rachel Springall both recommend checking rates and using the official ISA transfer process to avoid tax penalties. They note that moving to a higher-yield account can substantially boost returns amid ongoing cost-of-living pressures.