The bank has urged savers to take note of the looming deadline as it is set to reset in just two weeks’ time
Halifax is nudging its customers to cash in on a soon-to-expire allowance, firing off an email about ISAs – the tax-free savings havens – and encouraging folks to act fast before the annual allowance resets.
The lowdown on ISA rules is that savers can stash away up to £20,000 each year. So if you’ve got £20,000 tucked into an ISA or multiple ISAs by April 5, when the current tax year wraps up, you’re all set to do it again as the new tax year kicks off on April 6.
But miss that deadline, and you’ll be waving goodbye to the 2024/25 allowances.
In its email, Halifax said: “The tax year end is just around the corner. It’s a good time to make plans.
“Your savings are going great, but let’s make sure you don’t pay more tax than you need to.
“Saving or investing with an ISA means you get to keep more of your money. Explore our ISA options to find the right one for you and maximise your ISA allowance by 5th April.”
It then explained its ISA offerings, starting with the one-year ISA Saver Fixed, which pays interest at 4.25% AER.
You’ll need £500 to kick things off and there’s a catch: dipping into your funds before the year’s up will cost you.
For those who fancy a bit more flexibility, the ISA Bonus Saver serves up 3.40% AER/3.35% tax-free variable monthly interest, provided you limit yourself to three or fewer withdrawals during the one-year term. These can be started with just £1.
Halifax also offers a Stocks and Shares ISA, well-suited for long-term objectives such as saving for a mortgage deposit or aiming to boost your savings.
According to Halifax: “It allows tax-efficient investing, with income and gains free from UK Income and Capital Gains Tax, and offers flexibility to invest in a wide range of options.”
Lastly, the bank described its Ready-Made Investment ISA, presently available only to Halifax’s online banking customers, which is “a simpler way to invest if you’re not sure where to start. We’ve done the hard work for you”.
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