Premium Bond ISA Strategy Tax Year 2024/5

tetrarch

Mrs Tet and I have not yet funded our ISA's this tax year.

For context this year the tax year ends thus:

Apr 1  - Tues
       2 -  Wed
       3 -  Thurs
       4 -   Fri
       5 -   Sat

Assuming that our ISA providers accept debit cards, is it possible to give NS&I instructions to windraw cash and fund ISA's AFTER April's draw?

Regards

Tet

PS AJ Bell have just sent an email stating that their deadline is 11:59 PM on Saturday 5th 

InvesterJones

Won't the rate be better in the ISA so best get it in as soon as possible?

Swipe

Open an NS&I direct saver with £1 and set up a nominated account. Then after the draw, instantly cash your premium bonds to the Direct Saver from which will you will be able to withdraw less than £50k from by the next working day (around 11:30am). This should shave 2 days off trying to cash out your PBs directly to a nominated account, which may not allow you enough time to get your money to AJ Bell before the deadline.

jak22

It's quite logical to move from PB to ISA, with PBs at maybe 3.28% effectively, but why not just start next week for this year's allowance and then in little over a month there'll be next year's too - and some fixed ISAs let you add up to each year's allowance rather than within a short window,

tetrarch

Swipe said:

Open an NS&I direct saver with £1 and set up a nominated account. Then after the draw, instantly cash your premium bonds to the Direct Saver from which will you will be able to withdraw less than £50k from by the next working day (around 11:30am). This should shave 2 days off trying to cash out your PBs directly to a nominated account, which may not allow you enough time to get your money to AJ Bell before the deadline.

Oh, that is clever

Thank you for that tip

Regards

Tet

tetrarch

InvesterJones said:

Won't the rate be better in the ISA so best get it in as soon as possible?

PB is part of our investment mix, for tax reasons and for the "family fun" reasons where everyone in the family reports their winnings and we compare fortunes

My youngest daughter won £10K on her third draw in '23

Regards

Tet 

InvesterJones

tetrarch said:

InvesterJones said:

Won't the rate be better in the ISA so best get it in as soon as possible?

PB is part of our investment mix, for tax reasons and for the "family fun" reasons where everyone in the family reports their winnings and we compare fortunes

My youngest daughter won £10K on her third draw in '23

Regards

Tet 

The tax reasons won't be a problem as you're putting in an ISA, but I get the family fun aspect (no comment on gambling from me though )