ISA - How much can I put in today and how much after April 5th?

sam4sam

I want to open an ISA. I can only afford to put in £300 before the Friday 5th deadline this week.

But I can put in over £2k on April 28th (payday), is there any point of me opening the ISA this week before the deadline of April 5th?

Will I still get the tax free allowance on the £2k+ I put in later this month?
Or because I place this money in after the April 5th deadline does this mean I do not get the £2k+ saved tax free for the year (just the £300 I put in this week before the deadline?)

Any help appreciated.

Thanks
Sam

kidmugsy

sam4sam wrote: »

I want to open an ISA. I can only afford to put in £300 before the Friday 5th deadline this week.

But I can put in over £2k on April 28th (payday), is there any point of me opening the ISA this week before the deadline of April 5th?

Will I still get the tax free allowance on the £2k+ I put in later this month?

Find an ISA for which the convenience, terms and conditions, and interest rate suit you; deposit £300 on or before 5th of April.

Then on or after 28th April look again - no doubt different ISAs will be on offer. Either open a new one with your £2k or, if it suits you better, put the £2k into the old one.

If you end up with two different ISA, so be it. You might some day want to join them up by transfer, or not.

sam4sam

kidmugsy wrote: »

Find an ISA for which the convenience, terms and conditions, and interest rate suit you; deposit £300 on or before 5th of April.

Then on or after 28th April look again - no doubt different ISAs will be on offer. Either open a new one with your £2k or, if it suits you better, put the £2k into the old one.

If you end up with two different ISA, so be it. You might some day want to join them up by transfer, or not.

But don't you lose the ability to gain tax free savings on the money inputted if you don't put the money in before April 5th?

evenasus

ISAs are always tax free.

thenudeone

You get a new ISA allowance every tax year.

So on April 6th you can put £5760 into a new ISA (or an old one if you wish) regardless of whether you put anything in during the 2012/13 tax year or any other earlier year.

But if you have the savings, you could put £5640 in today then £5760 in next week. If you wait til next week you can only put £5760 in.

It's better to have £11.4k earning interest tax free than just £5.7k!