Secure your 2023-24 fixed term ISA rate *now*

Band7

If you are planning to have a 1 year fixed cash ISA next year, it might be a good idea to apply for it now. The Virgin Exclusive ISA* is 4.25% and matures 29/03/2024, which suggests they might withdraw it for new applicants at the end of the month

EDIT 19/03/2023:  the 4.25% version has been withdrawn on March 17. Thus you can’t apply any longer. If you managed to get it, you need to make deposits by April 17 at the latest

You can open this ISA now, and you don't have to put any money into it before 6th of April. Deposits can be made right up until 30 days after they stop selling this account. So if they withdraw it end of the month, you would have until end of April to make your deposit(s) or transfers. Though the sooner after April 5 you make your deposit, the better, as the maturity date is fixed.

If a better rate ISA appears by April 6, you can just ignore the Virgin ISA and put your money into the better one.

*To be eligible for this ISA, you need a Virgin current account, opened after 3/12/2019. You don't have to use that current account for anything.

Ocelot

Are you positive you can fund an ISA in the next tax year which was opened in this tax year? I asked the question a few weeks ago, and the general consensus was that you probably could, but was uncertain.

JGB1955

I don't have a Virgin current account but HAVE opened both a 2 year Virgin Fixed Rate E-ISA Issue 556 (4.17%) AND  a Paragon 2 year Fixed Rate ISA (4.15%).  I've already used this year's ISA allowance, so will choose which one to pay into when it comes to 6 April.  The funding window for both extends beyond that date.  I don't anticipate any problem waiting until then. 

jak22

Looking at the page for the Gatehouse 4.2% fixed it says

"Tax Year Deadline: If you’re opening an ISA with us, you must ensure that your account is open and funded by no later than 5th April 2023 if you want to take advantage of your subscription within the 2022/2023 tax year. We therefore recommend you apply no later than Monday 20th March 2023 to allow adequate time to meet the 5th April 2023 deadline. Funds received after this date will count towards your subscription for the 2023/2024 tax year instead."

There is a 30 day funding window with Gatehouse fixed so this might suggest it's possible to open one now but not fund until after the 6th April 

Ocelot

jak22 said:

Looking at the page for the Gatehouse 4.2% fixed it says

"Tax Year Deadline: If you’re opening an ISA with us, you must ensure that your account is open and funded by no later than 5th April 2023 if you want to take advantage of your subscription within the 2022/2023 tax year. We therefore recommend you apply no later than Monday 20th March 2023 to allow adequate time to meet the 5th April 2023 deadline. Funds received after this date will count towards your subscription for the 2023/2024 tax year instead."

There is a 30 day funding window with Gatehouse fixed so this might suggest it's possible to open one now but not fund until after the 6th April 

Thanks, that's really useful.

Shedman

If you're aiming to do this with Fixed Rate ISA don't forget Good Friday is 7th April and Easter Monday 10th April (so Bank Holidays) so its probably best to just make sure your chosen provider allows enough days to deposit to take you to at least 11April  so that you have some leeway in case of issues trying to fund on the 6th and especially if you can't transfer £20k in one go from your transferring bank.  Anything over 26 days should be sufficient so Virgin (30 days) and Paragon (28 days) would both be OK.

VNX

All good advice. I have opened Paragon two year fix at 4.15% with a 30 day or 28 I forget, funding window so will use that come the new tax year or open something better if it comes along 

Band7

Ocelot said:

Are you positive you can fund an ISA in the next tax year which was opened in this tax year? I asked the question a few weeks ago, and the general consensus was that you probably could, but was uncertain.

It obviously depends on the T&Cs of the ISA. Some you can, others you can’t. Where you can, you may have to ‘renew’ your ISA before you can make deposits, but that’s just an admin matter. The Virgin ISA I mentioned now accepts deposits until April 17 as the 30 day countdown from withdrawal has started. They have withdrawn the 4.25% version earlier than I thought they would

Shedman

Found this on gov.uk re guidance to ISA managers published by HMRC under "Applications to subscribe to an ISA" section.  (It is dated 2018 so could have been amended more recently though). https://www.gov.uk/guidance/information-you-need-from-investors-when-they-apply-for-an-isa#applications-to-subscribe-to-an-isa

...Where an investor has made an application to subscribe to an account, other than to a lifetime ISA, but no subscription is made in the tax year to which the application relates, the application will remain valid for a subscription in the next tax year (unless the application is for a single tax year only)..

Applications for a single tax year only

Managers can use application forms that allow applicants to subscribe for a single tax year only. If they do, the wording should be changed to read as follows.

‘I apply to subscribe to a cash ISA for 20 / only’, or

‘I apply to subscribe to a stocks and shares ISA for 20 / only’, or

‘I apply to subscribe to an innovative finance ISA for 20 / only’

Where a single year application form is used for a fixed term ISA, the investor will need to complete a fresh application form if they wish to subscribe in the year of maturity or thereafter.

masonic

The ISA declaration should not be read as conferring any obligation on either party. For example, a single tax year only declaration does not prevent an ISA manager accepting subscriptions in a subsequent tax year when you make another ISA declaration; or a continuous ISA declaration does oblige an ISA manager to accept subscriptions in subsequent tax years. The ISA declaration also does not oblige a customer to subscribe to an ISA in any tax year.

gele

Hi Can I open Paragon 2yr fix now and pay in for this tax year and next if payment in window crosses the tax years?
[I did ask this on a longer post elsewhere so apologies for anyone re-reading]
Thanks