Have you ever heard the term 'ISA season' bandied about and not understood what it meant? If so, you're not alone!
If you've never had an ISA or you're new to saving, you might not be familiar with ISA season or how it could impact your savings.
This article will help you understand how you might be able to benefit from this period, not just this year, but every year.
What is ISA season?
ISAs, which stands for Individual Savings Accounts, are accounts that allow savers to deposit up to £20,000 (a limit which is set by the government each year) without paying any tax on the interest earned. This is Money recently reported that over 4 million savers are at risk of having to pay tax on their savings interest (an increase of a million in six months), an ISA is an increasingly attractive option.
ISA season traditionally takes place from late February to through to the end of the financial year in April, and encourages savers to use any remaining ISA allowance they might have before they lose it on 6 April. ISA allowances do not roll over to the following year, so any unused allowance is lost permanently.
How could ISA season impact you?
In contrast to other types of savings accounts, ISAs provide savers with a zero-tax guarantee.
If you were to keep your savings in a non-ISA account, any interest you earned would contribute towards your personal savings allowance (PSA). Your personal savings allowance is £1,000 a year, or £500 if you're a higher-rate tax payer.
So, if you have savings sat in an account that you're close to paying interest on, or you're in a position to move some funds about, putting them into an ISA before the end of the financial year could be a savvy move.
Similarly, if you're organised enough to open a new ISA from the very beginning of the financial year, you'll benefit from a full 365 days of tax-free savings!
Ready to explore our ISA accounts?
If you think an ISA could be right for you, you can explore our accounts and current rates here. Please note that you can only set up one ISA each financial year.
If you'd like to discuss your situation, you can book a review with a Qualified Savings Adviser, who will be able to recommend a product to fit your unique circumstances. You can also visit one of our ten local branches, or call us on 01635 555700. Appointments can be undertaken in branch, in person, by video or by telephone.
