Isa savers who leave it until the last minute to invest in a tax-free savings account could be left out of pocket this year, two banks have warned.
With Good Friday falling on 2 April and Easter Monday on 5 April, savers with money still to invest must act more quickly than usual to ensure they take advantage of their full cash Isa or stocks and shares Isa allowance before the financial year finishes.
Yorkshire and Clydesdale banks, which launched two new fixed-rate Isas paying 3% and 5% AER this week, have advised prospective customers that applications for these accounts must be received by 1 April in order to ensure they are processed before the end of the tax year.
The banks estimate that up to 10% of Isa applications are made in the last two days before the tax year ends. Yorkshire and Clydesdale also claim that around £4bn worth of Isa savings could miss this year’s deadline if consumers try to invest their money too late.
Best Rate Cash Isas
If you’re looking to invest in a cash Isa before the end of the 2009/10 tax year, or are keen to find a great place to put next year’s tax-free savings, check out the Which? Best Rate Cash Isas review.
You can read more about how cash Isas work in the advice guide.
Stocks and shares Isas
Don’t forget, from 6 April you’ll be entitled to invest up to £10,200 a year tax-free in a stocks and shares Isa. Anyone over 50 can benefit from the new higher thresholds this year as well.
To learn more about stocks and shares Isas and whether one might suit you, read the Which? Stocks and shares Isas explained guide.
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