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Bank Accounts Latest News Last chance to top up your ISA
Bank Accounts Latest News Last chance to top up your ISA Last chance to top up your ISA
With the tax year coming to an end today (5 April) savers are reminded that they must use up the remainder of their tax free ISA allowance or they will lose it.
UK savers currently have an annual tax free savings allowance of £10,200, half of which can be put into a cash ISA and the other half (or up to the full £10,200) can be used for share dealing ISAs.This limit is set to rise in line with inflation from the new tax year (6 April) to £10,680, which means savers will be able to put up to £5,340 into cash ISAs every year.
There are several types of cash ISAs available on the savings market, so the rate you get depends on which account you choose.
If you are willing to lock your funds away for several years you will qualify for a better rate. However, this rate will not be affected by any changes to the Bank of England base rate, so if this rate rises you may find yourself locked in an account that is paying below average.
This can also work the other way, for example, when the base rate peaked a few years ago, those that fixed their rate will have been benefiting from high rates compared to accounts open to new customers.
Halifax is currently offering an instant access ISA that sits near the top of the Which4U ISA table with a rate of 3%. Savers are permitted to make up to 4 withdrawals per year and existing cash ISAs can be transferred to the Halifax ISA.
Nationwide is offering 3.10% on its instant access cash ISA. The Nationwide ISA comes with no withdrawal restrictions and allows previous ISAs to be transferred, but only Nationwide customers can benefit from this ISA so if you don't currently hold an account with the building society you would need to open one.
If you are keen to make the most of your tax free haven and wish to consider a share dealing ISA you can benefit from 100% tax free returns on your earnings. These accounts have the potential to provide far greater returns than their cash counterparts, however as with any stocks and shares investment comes the element of risk.
More and more financial institutions are now offering share dealing accounts, many of which incorporate the ISA wrapper, so savers have an array of choice.
By Sam Gooch
Tuesday, 05 April 2011 00:00
Comments (2)
The comments listed below are opinions held by the individuals posting and are not endorsed by, or representative of opinions held by which4u.co.uk. We cannot be held responsible or liable for the accuracy or content of any comments submitted. We reserve the right to publish, remove or edit comments as we see fit.
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Tracy Weaver 2011-04-05 10:01:18I didn't realise that you could save another 5 grand into shares isas. Surely this idea is much better than going for a cash isa because not only can you actually use the whole 10,200 on shares you don't have to give any of your rewards to the tax man!
I suppose investments are not for the faint hearted so all the non risk takers can go for the cash isa.
As for me, i'll be opening a nationwide account so I can make the most of the cash isas then trying my luck with the rest on the stock market. Beats a pention scheme!
Thanks -
Phil A 2011-04-05 10:12:41I don't know how people can save so much each year! I struggle to fill up my cash isa let alone an investment isa too!
I went in for the Natwest ISA this year, stops me from spending my savings with the incentive of higher returns - 3 years in this case.
Top 5 ISAs
|
Provider |
Notice |
Min Deposit |
Max Deposit |
Apply |
|
|---|---|---|---|---|---|
| View Full Table > | |||||
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|
3.75%
|
Fixed term for 2 Years
|
£100
|
£50,000
|
||
 |
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|
3.70%
|
Fixed term for 2 years
|
£10,000
|
£150,000
|
||
|
|
|||||
|
3.40%
|
Fixed term for 2 years
|
£3,000
|
£10,000
|
||
 |
|||||
|
3.30%
|
Fixed term for 3 years
|
£1
|
£5,640
|
||
 |
|||||
|
3.20%
|
Fixed term until 31/05/2013
|
£100
|
£5,340
|
||
Progressive BS 2 Year Fixed Rate ISA
- Account gives you a great rate of 3.75% AER
- You can open an account with just £100.
- The maximum balance is £50,000.
- Early access on full closure only and subject to an Early Closure Charge equivalent to 270 days interest at 3.1% plus a £15 (ex VAT) admin charge
- YOUR SAVINGS ARE PROTECTED UP TO £50,000 BY THE FSCS - Financial Services Compensation Scheme
Lloyds TSB 2 Year Fixed Rate Cash ISA
- Fixed interest rates. Earn 3.40% AER/Tax Free* on balances of £3,000 or more fixed for 24 months from account opening. View Fixed Rate Cash ISA interest rates.
- You have instant access to your money but a withdrawal charge will apply on any amount you take out.
- Interest rate fixed for 24 months from account opening.
- Interest calculated on a daily basis and paid on anniversary of account opening and upon account maturity.
- You can transfer your existing ISA into us, with our ISA transfer form. We may keep you informed of progress of your transfer by SMS text.
- Continued growth - at the end of the 24 month fixed rate period, your account pays interest at our standard variable Cash ISA Saver (excluding bonus rate).
- Manage your account through Internet Banking, PhoneBank® or branch.
- Save up to £5,100 each tax year. The 2011/2012 tax year commencing on 6th April 2011 will allow you to save up to £5340 in that tax year.
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Lloyds TSB 2 Year Fixed Rate Cash ISA
- Fixed interest rates. Earn 3.70% AER/Tax Free* on balances of £10,000 or more fixed for 24 months from account opening. View Fixed Rate Cash ISA interest rates.
- You have instant access to your money but a withdrawal charge will apply on any amount you take out.
- Interest rate fixed for 24 months from account opening.
- Interest calculated on a daily basis and paid on anniversary of account opening and upon account maturity.
- You can transfer your existing ISA into us, with our ISA transfer form. We may keep you informed of progress of your transfer by SMS text.
- Continued growth - at the end of the 24 month fixed rate period, your account pays interest at our standard variable Cash ISA Saver (excluding bonus rate).
- Manage your account through Internet Banking, PhoneBank® or branch.
- Save up to £5,640 each tax year. The 2011/2012 tax year commencing on 6th April 2011 will allow you to save up to £5640 in that tax year.
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Chelsea BS Fixed Rate ISA
- Guaranteed fixed rate of interest for the duration of the Fixed Rate e-ISA
- Minimum investment of £100
- ISA transfers in*** from other providers and deposits up to your 2011/2012 ISA limit, can be made whilst the product remains on sale. Transfer charges may apply, please check with your existing provider
- Interest paid annually
- Withdrawals are not permitted during the term
- Early closure or transfer out to another ISA provider is permitted subject to 90 days loss of interest on the closing balance. Early closure would mean loss of tax free status other than transfers to another ISA provider.
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Virgin 1 Year Fixed Rate e-ISA
- Great rate of 2.90% tax-free p.a./AER
- Guaranteed fixed rate of interest for the duration of the term
- Start saving from £1
- Minimum age 16
- Online application process to help make opening your Fixed Rate e-ISA easy
- Withdrawals are permitted during the term with a charge of 60 days loss of interest
- Transfers are allowed simply complete a Transfer Authority Form
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Virgin 3 Year Fixed Rate e-ISA
- Great rate of 3.30% tax-free p.a./AER
- Guaranteed fixed rate of interest for the duration of the term
- Start saving from £1
- Minimum age 16
- Online application process to help make opening your Fixed Rate e-ISA easy
- Withdrawals are permitted during the term with a charge of 120 days loss of interest
- Transfers are allowed simply complete a Transfer Authority Form
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
