If you’re leaving it until the last minute to open a cash Isa, you may need to act before March 26 – a full ten days before the deadline.
You need to use your cash Isa allowance of up to £20,000 for this tax year by April 5 – if you miss this deadline, you lose this year’s allowance.
Once your money is in a cash Isa, every penny of interest ends up with you rather than the taxman.
But this year you may need to open your Isa much earlier than usual because the deadline falls on Easter Sunday.
Branches will be open normal hours on Easter Saturday, but don’t chance leaving it that late. Similarly, some online banks say they will accept money up until 11.59pm on Saturday.
But even if they let you go up to the wire, you need to open your account in time to deposit the money. Some will pull down their shutters earlier.
Deadline: You need to use your cash Isa allowance of up to £20,000 for this tax year by April 5 – if you miss this deadline, you lose this year’s allowance
Harpenden BS, which has an easy-access Isa at 4.01 per cent for those living near its branches, says you must open it by 4pm on April 2 to ensure it’s up and running in time.
Hodge Bank says your application must be in by March 26. Any later and your deposit will count towards next year’s allowance.
We are seeing the usual scramble as we near the end of the tax year with providers competing fiercely for the ocean of money expected to flow in.
The app-based accounts from non-banks offer the best rates – but include bonuses payable for the first year.
These providers pull in money, which they then deposit with banks. The best is Prosper at 4.7 per cent, including a 1.92 percentage point bonus for a year, followed by Trading 212 at 4.68 per cent including a 1.08-point bonus.
Meanwhile, other providers including Nationwide and Yorkshire building societies have come out with new accounts at near top rates for the High Street.
But although they offer rates between 3.85 and 4 per cent, they restrict the number of withdrawals you can make each year.
Nationwide has its Single Access Isa paying 4 per cent, the best rate among big banks and building societies on the High Street.
But it only lets you make one withdrawal a year – or the rate plummets to a shabby 1.05 per cent.
If you’re happy with an online account where you can make just one withdrawal, Aldermore pays a better rate at 4.11 per cent.
But I think Atom (app only) at 4.25 per cent or Hargreaves Lansdown (4.26 per cent through its savings platform) are better value as they come with no withdrawal restrictions or bonus.
Virgin Money’s new Double Take E Isa (online only) pays 4.15 per cent and allows a more generous two withdrawals a year.