2014 Isa allowances: who will let you top up and when
When the chancellor announced the changes to the Isa regime in March, it meant savers keen to use this year's £5,940 allowance early - putting in it a fixed-rate deal at the start of the tax year on 6 April - could miss out on the new higher allowance.
Banks and building societies don't normally allow you to add to a fixed-rate deal once it is opened. But they have now relaxed their rules to give Isa savers a window of opportunity to do just that. Check what your provider offers to ensure you don't miss out.
Sue Hannums, director at savings advice site Savingschampion.co.uk, says: "Savers may be bewildered by the differing deadlines. Some plans let you top up at the original rate, while others ask you to open a new fixed-rate deal."
Some, including Leeds, Yorkshire and Skipton building societies, only give you until the end of July to act. And if you opened a fixed-rate deal this tax year with NatWest you could have only until 18 July to top it up.
Coventry BS will let you top up its 2.75% deal, fixed to May 2018, but it will not disclose how or when until sometime in June. Lloyds works differently again. With its 2% fixed for two years, you can top up until the end of the tax year.
Under Halifax new rules, you have 180 days to top up its fixed-rate deals opened in April, May or June. These include a 2% deal for 18 months or 2.05% for two years. With Santander's two year deal at up to 2.3%, you only have until 31st August to act.
At Nationwide, where you can earn 2.05% for two years, you can top up during July - or open a new account any time during the tax year.
This article was written for our sister website Money Observer
Invidivual Savings Accounts were introduced on 6 April 1999 to replace personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs) with one plan that covered both stockmarket and savings products, the returns from which are tax-exempt. The ISA is not in itself an investment product. Rather, it’s a tax-free “wrapper” in which you place investments and savings up to a specified annual allowance where the returns (capital growth, dividends, interest) are tax-exempt (you don’t have to declare ISAs and their contents on your tax return). However, any dividends are taxed within the investment, and that can’t be reclaimed.