Get researching ahead of April 5th ISA deadline

14 February 2012 09:46:11

Compare savings accounts and maximise your ISA allowance.

If you've failed to get your finances in order so far this year, take one bit of advice: research your savings options. With the ISA deadline looming on April 5th, there's now only a matter of weeks for savers to move their money and make the most of the current tax year's allowance.

ISA basics
Banks and building societies offer a wide range of cash ISAs - savings accounts that enable consumers to deposit up to a certain amount each year without paying tax on the interest you earn. For the current year (2011-12), the limit that can be placed in a cash ISA is £5,340. This money will then continue to be tax-free for as long as it is left in the account. But you only have until April 5th to deposit the money, otherwise you'll lose out on this year's allowance.

Where to start?
If you have a bank account, you'll probably have noticed ads for your bank's own ISAs. But it's always best to shop around before signing up for an account. This is because there is a wide range of interest rates out there. And with savings rates in general being poor at present, every penny of interest counts!

There are also different types of cash ISAs, with some (instant access) allowing you to withdraw funds at any time, and others (fixed-rate) requiring you to leave your money alone for at least 12 months. While these may appear less convenient, they usually pay a higher rate of interest so are definitely worth considering.

One of the easiest ways to compare ISAs is to check out the different accounts via an online comparison tool. This should show you the rates available with different providers and help you to choose the right account for you.

Don't forget to switch
Even people with ISA accounts from previous tax years should remember to compare savings accounts each year, as their accounts are unlikely to provide the best interest rates for ever. It's therefore sensible to switch accounts to ensure you're always earning a decent rate of interest. Remember not to simply withdraw the funds and deposit them in a new account yourself - this will cause the money to lose its tax-free status. Instead, you should choose an account that accepts transfers and let the old and new ISA providers arrange the transfer between the two accounts.

‹ Back

All news articles

All Home Page News
All News Stories

Product Offers
Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.

Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.