Urgent warning to savers as just days remain to claim up to £1,000 in free cash – don’t miss tax-free perk
THERE'S just days left to earn free cash from a bank account - or risk losing out on £1,000.
The final deadline to make use of your annual ISA tax-free allowance falls next Wednesday, April 5.
An ISA is a type of savings account where you can save up to £20,000 each year without being taxed - and some accounts even offer free cash top ups too.
A Lifetime ISA (LISA) is one of them and offers a bonus worth up to £1,000 a year.
A LISA can be opened by anyone aged between 18 and 39 so long as the money saved is for either a deposit on a first home costing up to £450,000, or for retirement.
You can save a maximum of £4,000 each year to get the free bonus worth up to £1,000 a year on top - or 25% of whatever you put in.
For example if you saved £100 into a LISA before next Wednesday, that would see the government give you £25 for free when you're ready to buy your first home or retire.
Meanwhile parents can open a Junior ISA (JISA) on behalf of a child and save up to £9,000 a year tax-free - on top of their own ISA allowances.
With any ISA you don't have to pay tax on any interest you make on the money you've saved - up to the allowance. Plus it's tax-free year after year.
You also won't pay tax on dividends or capital gains if your savings are invested in stocks and shares, rather than cash.
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Usually you pay tax on any money you make from savings over £1,000 if you are a basic rate taxpayer, or £500 if you pay tax at the higher rate.
But if you don't want to miss out on this year's allowances, you'll need to get your skates on.
While the tax-year ends on April 5, many ISA savings platforms have earlier deadlines so there is enough time to get the money in your account before the deadline.
Here's a full list of final deadlines from the main ISA providers.
It's worth checking with your ISA account provider directly if it's not listed here, and note that deadlines can vary according to how you deposit the money.
AJ Bell
You've got until 11.59pm on April 5 to make a debit card transfer into an ISA, Lifetime ISA or Junior ISA after setting up an online account with AJ Bell.
Bestinvest
For opening an ISA or moving cash into an existing Bestinvest ISA, savers can either phone or go online until midnight on Apri 5l.
Requests by post using an application form must be received by April 3.
Existing Bestinvest clients can start an online transfer from their general investment account to their ISA right up to 11.59pm on April 5.
Manual transfers must be carried out by April 4 to allow time for the funds to clear.
Chelsea Financial Services
The deadline to transfer savings from an investment fund into an ISA is already past.
Paper-based applications with a cheque, bank transfers and cheque payments for Junior ISA must all be received by April 4.
You have until 11pm on April 5 to transfer funds over the phone or online with a debit card.
Fidelity
You have until 11.59pm on April 5 to transfer funds into a cash or investment ISA if you're online.
If you'd prefer to phone, Fidelity is taking calls until 10pm on April 5 and any applications made by post must be received by 11.59pm on April 5.
Bed and ISA transfers from general investment accounts to your ISA must be made by 9pm on March 30.
Hargreaves Lansdown
Clients wishing to transfer funds from a general investment account to an ISA using the share exchange have until 2pm on April 5.
Opening or topping up an ISA online, by post or by phone can be done until 11.59pm on April 5.
If paying by BACs, the transfer deadline is April 3. If paying by Chaps it’s 5.40pm on April 5, and if using faster payments please apply by 10pm on April 5 as it can take up to two hours.
ii
If you're opening a new ISA, Junior ISA or you're adding money to your account by debit card or internal transfer you've got until 11.30pm on April 5.
Deposits made by bank transfer must be completed by 11.59pm on April 4. Transfers can take up to three days to clear so make sure you get your skates on.
If you are transferring investments from a general investment account to an ISA, you'll need to have it done by 4.30pm on Friday, March 31.
Vanguard
Clients can make contributions online up until midnight on April, 5.
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Phone lines will remain open until 8pm on April 5 to provide support, but contributions will need to be made online as post is not available.
Vanguard recommends clients who want to sell investments held in a general investment account and repurchase them through their IISA get it done by the end of Wednesday March 29.