ISA Deadline: What are my last minute options?

You now have until Wednesday to use your ISA allowance, so below we’ve listed some last-minute options.

The end of the tax year is near, which means there isn’t much time to make use of your current ISA allowance.

However, before you resign yourself to losing it forever, is it worth making one last contribution to your tax-free pot?

As explained in an article earlier this year, many savers will likely exceed their personal savings allowance this year due to the increase in high rates. As a result, it could be  worth switching over to a cash ISA alternative.

Plus, with the Government set to halve the annual tax-free allowance for dividends, could your current investments be liable for an increased tax bill?

If you feel as if you may be affected, here are some of your last-minute options.

As the official deadline to use your annual allowance is midnight on Wednesday 5^th April, you should consider applying for your ISA as soon as possible.

This is because all providers need to take time to process your application, and this might extend into Thursday. If this happens, then you will have to use your new reset allowance.

So, before signing up with a provider, it makes sense to check if they have imposed their deadlines for new applicants. For example, to open a new ISA with Triodos Bank you’ll have until tomorrow (4^th April) to submit your application, while if you want to open Paragon Bank’s market-leading easy access ISA you’ll have until 4pm on Wednesday to fund your account.   

Paragon Bank’s Triple Access Cash ISA - Issue 12 is just one of several easy access ISA rates you could consider. You can view this deal in more detail below.

Other competitive rates are listed in our ISA roundup, which is updated daily to ensure you are up to date with the latest increases.

Easy access ISAs could be useful if you’re not ready to commit to a fixed rate ISA deal just yet. You can keep your money in an easy access account and, when you’re ready to commit to a new fixed rate deal, then you can transfer these funds across if the provider allows it.

Otherwise, if you’re ready for a fixed rate, high street names such as Santander and Virgin Money currently offer market-leading fixed rates, which you can view in more detail here.

If you’re looking for an investment which could beat the current rate of inflation, then there is the option of opening a stocks & shares ISA.

It’s important to remember though that when you invest in shares your capital is at risk and you could end up with less than you put in.

So, with this in mind, if you’re still comfortable with a stocks & shares ISA you could opt for big names such as Barclays Smart Investor and interactive investor.

Each platform comes with its own advantages, so you can compare these in more detail on our listings.

If you’re saving towards a deposit on your first home or retirement, you’ll also have until midnight on Wednesday to make use of your £4,000 Lifetime ISA (LISA) allowance.

We make particular note of LISAs because if you miss the deadline you won’t just give up your tax-free advantages but a 25% Government bonus on your balance. This means each year you could receive up to £1,000 from the Government tax-free to go towards your first home or retirement.

To make use of this contribution before the deadline, you could opt for several cash providers such as Moneybox, Beehive Money and Paragon Bank. 

Visit our Lifetime ISA page for more information.