There are cash opportunities to be found but beware lock-ins and long delays

LOW interest rates have boosted sales of equity indidivual savings accounts (Isas), but all is not lost for those favouring cash, with a raft of product launches in recent weeks giving savers some hope of returns that outstrip inflation.

The Scotsman can reveal that Dunfermline Building Society is set to launch on Monday a one-year cash Isa at 3 per cent and a two-year fix at 3.25 per cent, both of which can accept transfers in from existing Isas. The products put the society among the best buys, although the market leader is still Santander's 3.5 per cent one-year fix that guarantees to stay 3 per cent above the base rate.

Next best is the Barclays Golden Isa, paying 3.1 per cent including a 1 per cent bonus for the first year. However, neither account accepts transfers in.

Higher rates are available on longer-term deals, although with no withdrawals allowed they require savings to be tied up for the duration. The best on the market is currently the 5 per cent rate from Clydesdale Bank over five years, which does permit transfers.

But many savers transferring existing balances to new Isas are experiencing costly delays, with some of the UK's biggest banks still using cheques to transfer customers' money.

While Lloyds Banking Group, RBS and Santander are among the providers now using electronic transfer systems for cash Isas – although not exclusively, with cheques still used in some cases – Isa providers including HSBC, Barclays and Nationwide still rely on the cheque-in-the-post system.

Use of the old system has caused delays and prompted a rise in complaints from savers who have lost money while their bank or building society has dragged its heels. Under HM Revenue & Customs rules, providers must transfer Isa funds to the new provider within 30 calendar days of the initial request. New providers then have five working days in which to set up the account and credit the new customer.

If your transfer takes longer than 30 working days, complain first to the relevant bank and ask for compensation for any interest not received. If that fails, take your complaint to the Financial Ombudsman Service, who can be contacted on 0300 123 9 123 or visit www.financial-ombudsman.org.uk.