Buying a 2024 Cash ISA

UKContractor

Hello

I've already used my allowance for a cash ISA bought in 2023.

I'm looking to buy a cash ISA on 6 April 2024 when the tax year begins.
Can I buy this now, or do I have to wait till April 6 2024? (Today is 31 March 2024).
Will banks release new ISA products on 6 April?

Thanks...

Bridlington1

UKContractor said:

Hello

I've already used my allowance for a cash ISA bought in 2023.

I'm looking to buy a cash ISA on 6 April 2024 when the tax year begins.
Can I buy this now, or do I have to wait till April 6 2024? (Today is 31 March 2024).
Will banks release new ISA products on 6 April?

Thanks...

I'm assuming by ``buying" a cash ISA you mean paying into a cash ISA. If you've already used up all of your ISA allowance for this tax year you can't pay into another cash ISA until 6th April. You can open a new ISA now though in order to secure the product, but wouldn't be able to make a deposit into it until Saturday.

35har1old

UKContractor said:

Hello

I've already used my allowance for a cash ISA bought in 2023.

I'm looking to buy a cash ISA on 6 April 2024 when the tax year begins.
Can I buy this now, or do I have to wait till April 6 2024? (Today is 31 March 2024).
Will banks release new ISA products on 6 April?

Thanks...

Yes then wait to the 6th to fund.
New ISA are always being released 

UKContractor

OK but I only seem to see 2023/2024 cash ISA products and not 2024/2025 cash ISA products, or am I wrong?

Is it best to wait till April 6 in order to get the best deals?

Any idea of best time to buy/obtain/get/purchase/(whatever) a cash ISA account product for the tax year 2024? (So I can pay money into it).

Thx!

RobfromCornwall

You seem to have slightly misunderstood things here.

An ISA is simply a savings account where the interest is tax free.  It is not a particularly special 'product' and not something you 'buy' any more than you buy a savings account.

The only other difference is that you can only save £20,000 per tax year in ISAs (and from 6 April 2024 this can be across multiple ISA accounts).

There are not specific accounts each tax year, providers release accounts with savings rate at whatever time is suitable for them (although this may well coincide with end/start of a tax year in order to promote them and gain custom, especially as many people add new money on or around 6 April each year). 

Pick an account that is suitable for you, open it now or after 6 April, but you can only add new money from 6 April as you have already used your £20k allowance for financial year 2023-24.

LeafGreen

I just opened a 1yr fix today, it has 7 days to fund so I can wait until new tax year and still be within the funding window with my 2024-25 allowance.
interest rates are trending downwards so wanted to get it opened in case rates drop.  

Catplan

UKContractor said:

OK but I only seem to see 2023/2024 cash ISA products and not 2024/2025 cash ISA products, or am I wrong?

Is it best to wait till April 6 in order to get the best deals?

Any idea of best time to buy/obtain/get/purchase/(whatever) a cash ISA account product for the tax year 2024? (So I can pay money into it).

Thx!

In my experience cash ISA product competition usually starts in March… as they release products to “remind” people to use the allowance. IMO it’s unlikely we will see any significant movement or new products released on April 6th or 8th as that is the Monday, unlikely but not impossible. I say that as BoE held interest rates.

if interest rates went up we might see new releases with higher rates… if they fall then existing products might stop being offered or replaced with lower rates…. You might get a 5% today, could be 4% come October, if only we had a crystal ball. 

Not sure what you mean by only seeing 23/24 cash isa products if I open one today and don’t fund until 24/25… I’ve not broken any rules, I’d just select the one I wanted from here and fund in 24/25 https://moneyfactscompare.co.uk/isa/easy-access-cash-isas/?quick-links-first=false

if you open one today, don’t fund it, and someone comes along on 6th and offers a great new product open that and fund it, the unfunded one will likely be closed off. If something better comes along at a later date you can usually transfer anyway.

Ocelot

When you open an ISA it often asks if you have already funded an ISA in the current tax year. If you tell the truth it only allows you to fund one by transferring in, so to open one for the next year you have to say 'no' the the question, even though you have, because you intend to fund it in the next tax year.

Maybe that's what the poster means?

Johnjdc

UKContractor said:

Hello

I've already used my allowance for a cash ISA bought in 2023.

I'm looking to buy a cash ISA on 6 April 2024 when the tax year begins.
Can I buy this now, or do I have to wait till April 6 2024? (Today is 31 March 2024).

Assuming your 2023 ISA was in the 2023/24 tax year, you have to wait. If it was in the 2023 calendar year but the 2022/23 tax year, you may be in luck.

Frogletina

Ocelot said:

When you open an ISA it often asks if you have already funded an ISA in the current tax year. If you tell the truth it only allows you to fund one by transferring in, so to open one for the next year you have to say 'no' the the question, even though you have, because you intend to fund it in the next tax year.

Maybe that's what the poster means?

When I tried to partially transfer an ISA a few weeks ago from YBS, (previous years funds) the online transfer that I filled in did not have that question, but the actual form sent to YBS said that I had not funded an ISA in the current year. It was rejected by YBS because I had funded that ISA in April 2023. 

YBS told me that I should have answered yes, which I couldn't do as the question was not there. The other building society advisor said that the question was there, even after checking with the ISA team, and rejected my complaint. However, and I had to spell it out to them, that is only asked if you want to transfer current years funds, so I asked for my complaint to be re-opened. They have, however, finally received the funds, which I believe was done after YBS contacted them. 

Jaguar98

If you've already maxed out your ISA allowance for this tax year, you'll need to wait until April 6th to contribute to a new ISA, but you can still open one now to secure the product you want.