Halifax is alerting its customers to act swiftly and make the most of a disappearing allowance. With just two weeks left, the bank has sent out emails highlighting the benefits of ISAs – the tax-free savings accounts – and encouraging people to utilise their annual allowance before it resets.
Under ISA rules, individuals can stash away up to £20,000 per year in these accounts. By depositing £20,000 into an ISA or across multiple ISAs by April 5, savers can then do the same from April 6 when the new tax year kicks off.
However, once the deadline passes, the opportunity to benefit from the 2024/25 allowances will be lost.
In its communication, Halifax advised: “The tax year end is just around the corner. It’s a good time to make plans. Your savings are going great, but let’s make sure you don’t pay more tax than you need to. Saving or investing with an ISA means you get to keep more of your money. Explore our ISA options to find the right one for you and maximise your ISA allowance by 5th April.”
The bank also detailed its ISA products, starting with the one-year ISA Saver Fixed, offering a 4.25% AER. To open this account, customers need a minimum of £500, and early withdrawals incur penalties.
For those looking for more flexibility, the ISA Bonus Saver might be appealing, with a 3.40% AER/3.35% tax-free variable monthly interest rate, provided no more than three withdrawals are made during the year. This account can be opened with just £1.
Halifax has also highlighted the Stocks and Shares ISA as an “ideal for longer-term goals like saving for a house deposit or seeking to grow your savings further” option. The bank stated: “It allows tax-efficient investing, with income and gains free from UK Income and Capital Gains Tax, and offers flexibility to invest in a wide range of options.”
Additionally, Halifax detailed its Ready-Made Investment ISA, exclusive to existing online banking customers. The bank described it as “a simpler way to invest if you’re not sure where to start. We’ve done the hard work for you”.
