Opening a fixed-term ISA at the end of one tax year, but paying in the next?

Desk

Nearing the end of the current tax year there were some pretty good fixed term cash ISA offers.

I noted that one bank was offering 4.30% for five years, and that it had a 14 day funding window. Having already allocated my full £20k in another ISA in 24/25, I opened an account wondering how I would stand if I didn't fund it until 6 April.

The bank have assured I can still fund it at any point, so long as the money comes within the 14 day period since it was opened. I'm assuming that's going to be okay with Mr Tax Man?

Question though is whether to take this chance at the start of next week while I've still got it, or wait to see what impact the current global trade furore has on base rates and resulting ISA offers?

masonic

It is not a problem with HMRC, as they do not consider an ISA opened until it has received its initial deposit. If that happens tomorrow or later, then it will be a 2025/26 ISA.

I doubt offers will improve beyond where they are now, unless interest rate expectations increase. Providers wishing to attract cash will already be making their best offers for the end of tax year.