When?

Bighead1965

Good morning all, first post so please be gentle.
My question is about when to set up a new ISA.
I have a fixed ISA with NatWest that runs Jan 2025 to 2026 which has a little over £20.000 in.
My wife and I have just recently become mortgage free and are looking to set up a new flexible ISA to put the money we paid on our mortgage into.
What do I do set it up now or after the 5th April 2025?
Many thanks

dunstonh

What type of ISA?
If it will be a monthly contribution, the sooner, the better.

friolento

Each of you can deposit £20,000 into your respective personal ISA in each tax year.The sooner you make your deposit(s), the sooner your money will start earning interest.

There are currently some fab introductory offers: https://moneyfactscompare.co.uk/isa/. These may vanish once the new tax year starts.

Bighead1965

dunstonh said:

What type of ISA?
If it will be a monthly contribution, the sooner, the better.

I am looking at a flexible Cash ISA, which ever offers the best current interest, (Trading 212, Tembo etc) and yes transferring the £300 I paid on my now complete mortgage, each month. 
Is it ok to do it straight away then please?
Many thanks

refluxer

Bighead1965 said:

My question is about when to set up a new ISA.
I have a fixed ISA with NatWest that runs Jan 2025 to 2026 which has a little over £20.000 in.
My wife and I have just recently become mortgage free and are looking to set up a new flexible ISA to put the money we paid on our mortgage into.
What do I do set it up now or after the 5th April 2025?

Who's name is your current cash ISA in and how much have either of you paid into an ISA (or ISAs) during the current (2024-25) tax year ?

If that is the only ISA that either of you have paid new subscriptions into this tax year then, judging by the current value, presumably either you or your wife will have unused ISA allowance for the current tax year that you could make use of up to and including the 5th of April but just note that some cash ISA providers will be withdrawing their accounts from sale this week, as always happens in the final run-up to the start of the new tax year. This may be less of an issue with the providers you mentioned above, however.

If you do decide to open one this week, then the money would need to be credited to the account by the end of 5th April in order for it to come under the current tax year's ISA allowance (and the 5th is a Saturday which may affect deposit times into certain banks and building societies).

One we get to 6th April, then both you and your wife will have the 2025-26 tax year's ISA allowance available to you (so £20k each). There's nothing to stop you opening an ISA now though and crediting it next week if you're not desperate to make use of any remaining ISA allowance for this tax year - it's when the money is credited to the account that is important as far as your ISA allowance is concerned.

Be aware that you can't open joint ISA accounts (I = Individual)