You know what they say…new fiscal year, new ISA? Well, that’s probably not what they say at all – but we certainly think ISAs are worth dedicating some thought to at the beginning of the new fiscal year!
What is an ISA?
An ISA is a tax-free retreat for your hard-earned savings. ISAs allow you to save up to the allowance (currently set at £20,000 for adult ISAs and £9,000 for junior ISAs) without paying any tax on the interest you earn.
The interest doesn't contribute to your tax-free Personal Savings Allowance, which is £1,000 as a basic rate taxpayer and £500 if you fall into the higher-rate bracket.
What does the 6 April have to do with anything?
Each year, 6 April marks the beginning of a shiny new fiscal year. A fresh fiscal year means another opportunity to open an ISA and benefit from a full year of tax-free savings.
But the beginning of a new tax year means the end of an old one, which means you lose any ISA allowance you haven’t used. To make the most of your ISA, remember: any remaining allowance will not roll over on 6 April. It’s like leftover data, minutes, or text messages on your phone contract – if you don’t use them by the end of the month, they're gone.
Find the right ISA for you in 2024
There are loads of ISAs out there, with various rates and different account terms, so make sure you do your research to understand which best suits your needs and savings style.
An easy-access account gives you unfettered access to your savings, which could be the right choice for you if you like knowing your money is accessible in the event of an emergency. If you want to lock your savings away for a set period, a notice ISA, which has a set period for withdrawals, might make sense.
At Newbury Building Society, we offer easy access Cash ISAs and a Junior Cash ISA (JISA), as well as 90 and 60 Day Notice Cash ISAs. Even better: Our adult ISAs are fully flexible and accept transfers-in from other providers (subject to terms and conditions of the ISA product).
Discover more on our website, in your local branch, or by booking a savings appointment with one of our friendly team.
