Isa Newbie

himonster

Hi, I am looking at opening an ISA which is around 3.89% for a year.
I'm confused though as the bank states that the last payment to make for the 2024/2025 tax year is 05/04/2025 and the last payment I can make for the 2025/2026 tax year is 09/05/2025.

What happens if I open it and make my deposit before the end of the current tax year - 05/04/2025? Will it mature and then I have to set up a new one?!

Also, after the year I am setting it up for, it says it will turn into a cash ISA. What can I then do with the funds and interest? Simply transfer it to my normal account?

Thanks

slinger2

I'm afraid your post doesn't make too much sense to me. I assume you're thinking of opening a 1-year fixed rate cash ISA. Most such products have a shortish "window" where you pay money in. After that you can't add more. You can pay up to £20k into ISAs in 24/25 and an additional £20k in 25/26. So, in theory, you could pay £40k into this ISA. The ISA will mature after a year (or so). A few weeks before it matures they will contact you and give you various options, which will include taking the money out, or moving it to another Cash ISA. If you do nothing they will generally move it into another Cash ISA waiting for your instructions.

wmb194

himonster said:

Hi, I am looking at opening an ISA which is around 3.89% for a year.
I'm confused though as the bank states that the last payment to make for the 2024/2025 tax year is 05/04/2025 and the last payment I can make for the 2025/2026 tax year is 09/05/2025.

What happens if I open it and make my deposit before the end of the current tax year - 05/04/2025? Will it mature and then I have to set up a new one?!

Also, after the year I am setting it up for, it says it will turn into a cash ISA. What can I then do with the funds and interest? Simply transfer it to my normal account?

Thanks

Fixed Isas often have limited funding windows so this is what it’s referring to.

Ayr_Rage

A rate of 3.89% is pants!

https://moneyfactscompare.co.uk/isa/1-year-fixed-rate-isas/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

himonster

Ayr_Rage said:

A rate of 3.89% is pants!

https://moneyfactscompare.co.uk/isa/1-year-fixed-rate-isas/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

It's not a huge difference, plus it's with a well known bank. I've never heard of those mentioned in the link.

himonster

Ayr_Rage said:

A rate of 3.89% is pants!

https://moneyfactscompare.co.uk/isa/1-year-fixed-rate-isas/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

Thanks. I would be putting my full limit in there, so I presume putting it in now, it will still be for the 2025/2026 window and not the end of the current one? I was confused by the wording.

eskbanker

himonster said:
I would be putting my full limit in there, so I presume putting it in now, it will still be for the 2025/2026 window and not the end of the current one? I was confused by the wording.

If you pay in by Saturday it'll count towards your 2024/25 allowance, or if after that, then to your 2025/26 allowance.

sammy_zammy

himonster said:

Ayr_Rage said:

A rate of 3.89% is pants!

https://moneyfactscompare.co.uk/isa/1-year-fixed-rate-isas/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

It's not a huge difference, plus it's with a well known bank. I've never heard of those mentioned in the link.

Presumably you’ve heard of HSBC and Halifax at 4.25%…?

sammy_zammy

eskbanker said:

himonster said:
I would be putting my full limit in there, so I presume putting it in now, it will still be for the 2025/2026 window and not the end of the current one? I was confused by the wording.

If you pay in by Saturday it'll count towards your 2024/25 allowance, or if after that, then to your 2025/26 allowance.

To add to that, you can likely pay in both before and after and contribute from both years - that may be useful depending on how much you want to save.

Ayr_Rage

himonster said:

Ayr_Rage said:

A rate of 3.89% is pants!

https://moneyfactscompare.co.uk/isa/1-year-fixed-rate-isas/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

It's not a huge difference, plus it's with a well known bank. I've never heard of those mentioned in the link.

4.52% as opposed to 3.89% is a 16% difference, not to be sniffed at and all those providers have full FSCS protection.

friolento

eskbanker said:

himonster said:
I woPriuld be putting my full limit in there, so I presume putting it in now, it will still be for the 2025/2026 window and not the end of the current one? I was confused by the wording.

If you pay in by Saturday it'll count towards your 2024/25 allowance, or if after that, then to your 2025/26 allowance.

Provided that the ISA provider still credits for 2024-25. Some of them have earlier deadlines.