URGENT warning, banks closing ISA deadline early!

2nd April 2012  

If you’re a saver looking to maximise your personal ISA allowance (currently £10,680 for the 2011/2012 tax year) before the 5th April 2012 deadline you need to quickly check with the institution that you save with on what their actual company deadline is.

Officially banks and building societies are supposed to receive customers ISA funds by the HMRC deadline of midnight on the 5th April in order for their deposits to qualify as part of this year’s allowance, but it ‘s been confirmed that some are closing their doors early to some savers.

Savers who miss the 5th April tax-year deadline effectively lose the ability to invest this tax year’s allowance in an ISA and get interest or growth tax-free.

Someone who had maximised their ISA allowances and made full deposits every year since ISA’s were first introduced in 1999 would now have some £40,000 shielded from the taxman (plus any interest or capital growth in shares or other investments).

If you’re looking to make a deposit in a new ISA, or are planning to top up an existing ISA before the deadline, you should quickly contact your ISA provider and check how much actual time you have left.

Here’s an update on institutions who are closing their books shortly or ahead of the deadline:-

Nationwide

Popular amongst savers because of its e-ISA with 3.1 % return, savers can apply online only up to 2nd April, but in-branch applications for Nationwide ISA’s are open up until 5pm on April 5th.

Compare Nationwide ISA’s here on their website

Santander

Due (it says) to high demand Santander which offers several top deals including a 3.3 per cent instant access has brought forward the cut-off date for their standard ISA to 4th April and 1st April for phone applications.

ISA savers can apply online until 1st April. Existing Santander customers who have money in other Santander accounts have until 5th April to apply online.

Santander will accept applications at its High Street branches until the close of business on 5th April.

More details on Santander ISA’s on their website

Halifax (HBOS)

Halifax’s 3 per cent ISA Saver Online consistently features in positive reviews.

Halifax is accepting online applications until midnight on 5 April, provided funds are transferred into the account by that time.

Halifax branches will be open until 7pm on 5 April accepting applications, and new applications for ISAs are accepted over the telephone til midday on the same day.

More details on Halifax website about their ISA’s

Cheshire Building Society (part of Nationwide)

The Cheshire dominates the 18-month ISA accounts tables with a 4% rate, the same as it’s instant access account. The deadline for new applications is 2nd April, with cheques to be received by 5th April.

Cheshire Building Society ISA Guide

NatWest RBS

The NatWest’s ISA pays 3% on balances less than £10,000, going up to 3.5% if you transfer in an old ISA and increase the balance up to £30,000.

Existing NatWest online banking customers have until 5th April to apply. New customers have already missed the recommended postal deadline of 26th March. Both new and existing customers were given a 26th March deadline for telephone applications.

In branch applications can be accepted up to close of business on 5th April.

More detail on the NatWest website ISA Guide

AA Savings

AA Savings bank officially stopped accepting 2011/12 ISA cash applications for its postal access ISA on 29th March.

However, AA Savings which is owned by HBOS says their deal continues into the new tax-year for 2012-13 deposits but is reverting to an online managed version on 4th April.

More info on the AA Access Cash ISA on the AA website

Saga

Saga which only offers its products to the over 50’s, does currently offer the best 1 year rate at 3.6 per cent. But it’s stopping taking applications for its top-paying 3.6% one-year deal on 29th March.

All monies must be received by 5th April. Applications to deposit funds for next year’s allowance can be made from today (2nd April) onwards.

More info on the ISA saver account on Saga’s website


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