If you’ve opened a newspaper or read the news online recently, you’ve probably come across the term ‘Isa season’ which focuses on how you should use your Isa allowance before the end of the tax year.
But, what does it actually mean and why should you be taking advantage of it?
In a nutshell, with normal savings accounts, any interest you make is taxed. So, say for example, you deposit £10,000 in a 12-month fixed term deposit account paying 1.93% interest. At maturity, you’ll make £193 in interest, which will be taxed at up to 45%, depending on the tax bracket you belong to. With an Isa, however, you can, at the moment, save up to a maximum of £20,000 a year and any interest you make on that £20,000 will be tax free.
At OakNorth, we offer a range of savings products for individuals: fixed term deposit accounts ranging from six months to five years, easy access and notice accounts, as well as easy access and fixed rate cash Isas. Since our launch in September 2015, we have attracted over 40,000 deposit customers, enabling them to make their money go further.
Our current Isa range gives savers a choice between two types of Isa products: a personal easy access cash Isa and a 12-month fixed rate cash Isa. Both require a minimum deposit of £1,000 to open an account and a maximum balance of £250,000. However, we’re about to strengthen our offering further with the launch of a 24-month fixed rate cash Isa and a 36-month fixed rate cash Isa.
Some things to be mindful of:
- The deadline: the end of the tax year is 5th April, so if you want to take advantage of your £20,000 tax-free subscription limit, you need to open and fund your account before then.
- Compare the market: one of the best tips we can provide is to shop around for the best product for your needs — do your research online through price comparison websites, read the personal finance pages of the national newspapers and look at the best-buy tables.
- Review the reviews: it’s also worth looking into the customer experience of the provider you’re considering.
- Make sure the provider is the right fit for your needs: while rates and reviews are important, it’s also worth looking into how you can open and manage your account. How simple is the process? How long will it take you? How can you manage it going forward?
- Make sure the product is the right fit for your needs: there are several different types of Isa products available in the market: cash Isas, which we offer, stocks and shares Isas, Help to Buy Isas, Innovative Finance Isas, junior Isas and lifetime Isas. Doing your research will enable you to find the product that best fits your needs and is most aligned with your savings goals.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Unity Trust Bank provides £1.1m loan for homeless housing
Unity Trust Bank has provided a £1.1m loan to enable The Cornerstone Partnership to purchase 17 properties for the homeless in Coventry...
Holvi sets out plans for European expansion
Small business current account provider Holvi has announced plans to expand its presence across the eurozone, focusing on Ireland, Italy, Belgium, France and the Netherlands...
Collaboration is the new disruption
Collaboration is key. The incumbents undoubtedly have the customers and the new entrants have the technology, so logically the combination of these two factors creates a far greater proposition than either one on its own...
OSB posts 5% loan book growth
OneSavings Bank (OSB) has grown its loan book by 5% in the three months to 31st March 2019, according to its latest trading update...
Investec, Nationwide and The Co-operative Bank awarded £80m of funding
Investec Bank has been awarded £15m from pool B of the Banking Competition Remedies Ltd (BCR) Capability and Innovation Fund (CIF)...
When relationships count, it’s the new entrants who are gaining market share
The theory that some things are often better said in person really does ring true for small- and medium-sized businesses...
Sim Gill appointed to newly created role at Gatehouse
Gatehouse Bank has promoted Sim Gill (pictured above) to the post of intermediary national key account manager...
Hinckley & Rugby partners with Criteria Hub
Hinckley & Rugby Building Society has updated its criteria search system for mortgage intermediaries following a partnership with Criteria Hub...
Aldermore completes integration with vehicle finance business
Aldermore has completed its integration with vehicle finance business MotoNovo Finance...
Metro Bank confirms £350m equity raise plan is ‘well advanced’
Metro Bank has confirmed that it plans to raise around £350m of equity capital to support its growth...
Al Rayan Bank partners with Alexander Hall
Al Rayan Bank has partnered with mortgage broker Alexander Hall...