ISA season begins in February and runs until the new tax year in April. During this time, banks and building societies reorganise their rates for the following year to encourage savers to start depositing.
The ISA timeline follows the financial year, rather than the calendar year. The end of the tax year falls on April 5th, with a new tax year starting on 6th April.
Why is ISA season important?
ISAs offer savers a zero tax guarantee, up to the limit of £20,000. If towards the end of the financial year you’re yet to reach your £20,000 tax-free limit, you’re encouraged to use it and in April you can start a new year of tax-free savings.
During ISA season, the market can become more competitive so savers can benefit from more attractive rates. This is to encourage deposits within the remaining few months of the tax year - or to onboard new customers early.
At Furness Building Society, we have a variety of ISAs available for all ages and savings abilities. Take a look at our Cash ISAs, Fixed Rate ISA and Junior ISA accounts.
Can I have more than one ISA?
Yes, having more than one ISA is possible but there are some limitations.
Having more than one ISA doesn’t increase your ISA allowance. This is still £20,000 per tax year regardless of the number of accounts you have.
You can only add money to one ISA of each type in a tax year.
Is an ISA allowance different from a Personal Savings Allowance?
Yes, an ISA allowance is separate from your Personal Savings Allowance (PSA) and does not count towards it. It works differently from a PSA because it lets you save up to £20,000 a year tax-free. This allowance resets to £20,000 each tax year, regardless of how much is already in your account.
There are five different types of ISA accounts that you can open: Cash ISA, Stocks and Shares ISA, Lifetime ISA, Innovative Finance ISA and Junior ISA.
Can I transfer my money to a new ISA?
Yes but make sure your new provider accepts transfers and there aren’t any costs for moving your money. By contacting your new provider ahead of closing down your old account, you can ensure that the tax benefits are not lost. Check out our ISA transfer information here.
Do you have any questions not covered in these FAQs? Please get in touch with our team of experts to discuss your savings plans, either by visiting us in branch or calling us on 0800 834 312.
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