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Apr 2020

Last Minute ISAs: What You Need to Know

Last Minute ISAs: What You Need to Know

There are two days left until the deadline for the end of tax year 2019/2020; that's two days until your allowance for this tax year runs out. It's use it or lose it - so for those looking to open a last minute ISA, we've got you covered with our whistle-stop tour of ISA accounts. 

April 6th, 2020, is mere days away. 

So you want to use your ISA allowance for tax year 2019/2020 before clock strikes midnight on the 5th. 

What's an ISA? 

An ISA is a tax-efficient way for you to make your money work; by putting your money into an ISA tax-free wrapper, you will enjoy returns which are safe from the tax man. 

For this tax year, you are able to put in a maximum of £20,000 into an ISA. 

Different types of ISAs include: 

  1. Instant Cash ISAs 
  2. Fixed Term ISAs
  3. Stocks and Shares ISAs 
  4. Junior ISAs
  5. Lifetime ISAs 
  6. Peer to Peer ISAs

Within these categories, there are also sub-categories such as Ethical ISAsFund Supermarkets and High Income ISAs. For more information on these, read our recent series of blogs. 

What's an Instant Access Cash ISA? 

An Instant Access Cash ISA is a savings account where the interest you gain is protected from the tax man. You can 

This will suit you if...

  1. You want to take last-minute advantage of your ISA allowance, but are wary of more high risk accounts 
  2. You know you'll need access to your funds

What's a Fixed Term ISA? 

A fixed term Cash ISA is like an instant access Cash ISA, but your money will be locked away for a set period of time. This can be 1,2,3,5, or 7 years - and different providers will offer different time periods and rates. 

This will suit you if...

  1. You know you won't need to access your cash for a set amount of time 
  2. You want slightly higher rates than an Instant Access Cash ISA, but don't want the associated risks of a Stocks and Shares ISA. 

What's a Stocks and Shares ISA? 

With a Stocks and Shares ISA, your money is invested in - you guessed it - “Stocks” and “shares”. These are are generally interchangeable terms, though they have slightly different meanings:

  1. “shares” can refer to owning part of one particular company (“I own shares in Unilever”)
  2. “stocks” can refer to shares in a number of different companies (“I own stocks in the renewable energy industry”)

With this ISA you will gain returns on your investment which will be tax free. 

This will suit you if... 

  1. You are already an investor or want to be an investor - and you want your returns protected from the tax man
  2. You want the higher returns rate offered by Investment ISAs 
  3. You want to put your money into specific investments, like Ethical Investment ISAs or Climate Change funds

What's a Junior Isa? 

A Junior ISA, or JISA, is an ISA account which is set up on behalf of a child by a parent or guardian. Family, friends and parents can then put money into that ISA. This year, this can be up to £4,368 - but for next tax year this allowance is doubling to £9000 each tax year. 

This will suit you if...

  1. You are a parent or guardian of a child and you want to put aside money for their financial future. 

What's a Lifetime ISA? 

A Lifetime ISA is an ISA with a very specific purpose - long term saving. You can but in up to £4000 per tax year (this is the allowance for 2019/2020 which is unchanged for 2020/2021). The government will then give you a 'bonus' of 25% of what you have put into this account: which means you can get a boost of up to £1000 each year. This money can only be used to help you buy your first home or as long-term retirement savings. 

This will suit you if....

  1. You are looking to buy your first home 
  2. You are saving for retirement

What's a Peer to Peer ISA? 

A Peer to Peer ISA, otherwise known as Innovative ISAs, allow savers to lend their money to other borrowers directly - bypassing the middle-man and thus, benefiting from a better interest return. 

This will suit you if... 

  1. You've invested before, and are familiar with the process
  2. You're comfortable with the associated risks 

Read more about our Cash ISA rates & Investment ISA rates. 

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

Lifetime ISAs

Save for your first home and retirement

Compare Lifetime ISAs

Junior ISAs

Invest for your child’s future

Compare Junior ISAs: 

Stocks & Shares ISAs

Invest tax-free in stocks and shares 

Compare Stocks and Shares ISAs:

Latest News

5 Considerations for Your Next Investment ISA

15th March 2021

You've decided to invest your savings into a Stocks and Shares ISA. You'll be using your tax-free ISA allowance for this year before the deadline, while also investing your money for your future. But what do you need to consider before opening an account? We've put together a list of our top five considerations for you to think about before you click "apply". 

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