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ISA Guide
Last-minute ISA guide
Updated: Monday 13 February, 2012
By Martin Fagan
Haven’t sorted this tax year’s ISA yet? You need to act fast! Our guide to applying at the last minute is here to help
ISAs are a fantastic way to shield your hard earned cash from the taxman, as any interest or capital gains you receive on money in an ISA comes to you completely tax free.
You can save up to £3,600 in a cash ISA each year, or £5,100 a year for the over-50s, and you really should make the most of this allowance if you can - any unused allowance is lost and doesn’t roll over to the next year.
Download our complete guide to ISAs
If you haven’t sorted your ISA yet then you need to do it now - the deadline for ISA deposits is Thursday 5 April, a date which will arrive sooner than you think. This year, the tax year falls on the Thursday before Good Friday, so leaving your ISA application until the last moment could leave you in trouble.
If you’ve already got a great ISA, then you just need to make sure that you’ve put as much of your annual limit in as you can afford before this date, but if you haven’t yet got an ISA or want to switch to a better ISA, then you need to act fast.
How do I get an ISA?
To get an ISA you need to do the following:
- Compare ISA deals - Take a look at what is currently available. Many banks and building societies have recently launched new ISA products to attract last minute ISA savers.
- Look for the best rate - As with all savings products, the higher the interest rate the better, so look for the juiciest offering.
- Read the small print - Before you apply for your chosen ISA, make sure you have read the small print. Watch out for restrictions on withdrawals and note whether the rate includes a bonus that will drop dramatically after a year.
- Apply - You can apply for ISAs online, by phone and in some cases in branch.
What do I need to apply?
Applying for an ISA should be fairly straightforward - but remember you can only open a cash ISA with one provider each year (you can, however, choose a different ISA provider in each tax year).
Things you will need to open an ISA:
- Basic details such as your name, address, date of birth, telephone number etc.
- Your national insurance number.
Things you may need to open an ISA:
- Details of a bank account you would like to link to your cash ISA
- Identification documents such as your passport or driving licence (although some banks do not require copies of these).
Because of the need to comply with money laundering regulations, certain providers may have additional requirements, so if you’ve left your application to the last minute and are planning to visit a branch you should definitely check with the ISA provider which documents you will need. After all, it’s important to arrive prepared.
When you apply online, most banks will then send you a form to sign and send back as proof you live at that address. Some may require you to send photocopies of your proof of identification; however many now use an electronic ID verification process that, in most cases, removes the need to send physical evidence.
How late can I leave it?
Working out the last day you can apply online or by phone is very difficult and many banks are reluctant to put a date on it. This is because there may be technical glitches or identity issues that take some customers longer to sort out than others. Plus, leaving things to the very last minute will, of course, leave you heavily reliant on the postal system.
Basically, you should aim to apply as soon as possible. If you are reading this now and haven’t applied yet, what are you waiting for?
If you think you may have left it too late to apply, it’s always worth checking with individual providers whether you can still open an ISA with them - banks want your cash so are likely to try their best to help you meet the deadline.