Beat the ISA rush, savers told

Category: Savings
Date: 3/3/2010

Savers have been warned against leaving their ISA dealings to the last minute, as an early Easter could see consumers pay more tax.

With Good Friday falling on 2 April and Easter Monday on 5 April, savers have less opportunity to beat the tax year deadline. Similarly, ISA providers have two fewer days to process applications and transfers, the Clydesdale and Yorkshire Banks have said.

It is estimated that up to ten per cent of ISA applications will be made in the last two days of the tax year, which could total almost 1.5 million this year.

Around £4 billion of ISA investments could miss out if savers fail to make their applications before 1 April.

"With Easter falling so early this year, if you haven't already done so, the opportunity to invest in an ISA this year is that little bit less," commented Steve Reid, retail director of Clydesdale Bank.

"The ISA deadline isn't flexible, so beat the deadline and pay less tax."

Savers looking to conduct their ISA business early this year have a number of competitive deals to choose from. In the last two weeks, Moneyfacts.co.uk has awarded a number of ISA products four star ratings.

The vast majority of them also allow savers to transfer existing funds to them as well, with recent research from Moneyfacts.co.uk finding that 92 per cent of existing ISAs offer such a facility.

Compare fixed rate ISA or cash ISA or take a look at our best sellers savings accounts

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