How to make the most of your savings before the ISA deadline
Making the most of your savings has always been important, but in today’s environment it is arguably more important than ever before. Rising rates over the past year mean that the interest we can earn on our savings is higher than it has been for a long time, and with the ISA deadline fast approaching, now is a great time to check that your savings are working for you in the best possible way.
What is the ISA deadline and why is it important?
The ISA deadline is 5 th April and is the final day in which you can pay into an ISA for this tax year (2023/4), with a maximum allowance of £20,000. After the deadline, you will get a new allowance for the next tax-year (2024/5), but you can’t roll over any unused allowance from this year, meaning you need to pay in as much as you are able to before the deadline. Any interest earned from an ISA is tax-free, which is what makes an ISA such a popular option when it comes to savings accounts.
What are differences between types of ISA?
There are a variety of ISAs to choose from and which one you choose depends on your needs and personal circumstances. For example, a Cash ISA is usually better for shorter term savings goals
whereas Stocks and Shares, Innovative Finance and Lifetime ISAs are usually more suitable for saving over longer time periods.
What can I do now to ensure my savings are in the best position ahead of the deadline?
If you are unsure whether you have any of your ISA allowance left for this tax year, just ask your provider. Whilst the deadline for this year is 5th April, some ISA providers may require you to make deposits before this date to ensure they have time to process them before the deadline.
Therefore you should check with your provider what is the latest date they can accept payments for this tax- year to make sure you don’t miss out. Click here for more info.
