Grab a Last Minute ISA Before Tax Year End

CHESTER, England, March 27, 2013 /PRNewswire/ --

• Time is running out to take advantage of tax free benefits
•  MoneySupermarket has seen a rush on applications for tax free savings

With the end of 2012/13 tax year just over a week away, MoneySupermarket.com urges savers who have not taken advantage of this year's ISA allowance to move quickly and  look for the latest deals on offer, or miss out for good, especially if they have existing ISA funds languishing on low rates.

Britain's number one comparison site has seen a 21 per cent increase in the number of people looking for ISAs through its site compared to March 2012. However, unlike in previous years, more people are opting to fix their ISAs rather than take out a variable rate deal*, largely due to the average rates on fixed rate ISAs being higher than those on easy access cash ISA products. The average rates on the top 5 fixed rate ISAs is currently 2.99 per cent, 0.58 percentage points higher than the average rates on the top 5 easy access ISAs, however, you will have to lock your money away for a longer period to take advantage.

Kevin Mountford, head of banking at  MoneySupermarket, said: "It's the final countdown until the end of the current tax year on 5^th April, and consumers could still make the most of the tax efficient options for their savings. With a maximum cash ISA allowance of £5,640 available, you'd be throwing money away to the tax man if you didn't take advantage. A number of providers have announced new rates in the last few weeks, and finally we're seeing more competitive rates emerge. Due to falling savings rates, we are now beginning to see more people opting for fixed rate ISAs over easy access cash ISAs. While the rates on these products are more generous, savers need to be prepared to lock the money away as they cannot access it during the term of the bond. For those who cannot afford to lock money away, you can still get rates five times that of base rate on easy access Cash ISAs.

"Although you may not have enough spare cash available to invest in the current tax year, if you have any ISA funds from previous years, it is worth checking the rate you are currently being paid and be prepared to switch those funds to an account that allows transfers of existing ISA funds in. However, if you do this, don't just withdraw the money from your existing ISA as it will lose its tax free status. Instead you need to follow the ISA transfer process which your new provider will help you with, but with time running out until the end of the tax year it is important to make sure this can be done before the deadline.

"Although this tax year isn't quite over, it is also worth planning ahead to the next tax year. Those who invest the full cash allowance at the start of the new tax year will benefit from the tax benefits for the entire year, ensuring you get the best returns on your savings."

For anyone looking for more information on ISAs visit the MoneySupermarket ISA event.

Notes to editors

* Number of people taking out fixed rate ISAs in March 2013 is 49 per cent compared to 35 per cent in March 2012.

    Cash ISAs
    Based on GBP5,640
                        Account
    Provider            (Terms &             Minimum    AER     Bonus    Bonus Period
                        Conditions Apply)    Deposit
    First Trust Bank    Cash ISA             GBP50      2.50%   N/A      N/A
    Cheshire BS         ISA Saver (Issue 1)  GBP1,000   2.50%   2.00%    31/07/2014
    Santander           Direct ISA Saver
                        (Issue 1)            GBP2,500   2.50%   2.00%    12 months
    Tesco Bank          Instant Access Cash
                        ISA                  GBP1       2.30%   0.30%    12 months
    Stafford Railway BS Cash ISA             GBP1       2.25%   N/A      N/A
    HSBC                Premier Variable
                        Rate Cash ISA        GBP1       2.25%   1.98%    12 months

    Fixed ISAs
                        Account
    Provider            (Terms &             Minimum   AER          Notice       Access
                        Conditions Apply)    Deposit 
                                                       3.1%
                                                       Fixed paid                Phone
    Halifax             ISA Saver Fixed      GBP500    anniversary  5 year bond  Branch
                                                       3.05%
                                                       Fixed paid                Phone
    Halifax             ISA Saver Fixed      GBP500    anniversary  4 year bond  Branch
                                                       3%
                                                       Fixed paid                Phone
    Halifax             ISA Saver Fixed      GBP500    anniversary  3 year bond  Branch
                                                       3%
                        123 Exclusive Major            Fixed paid                Phone
    Santander           ISA                  GBP1      yearly       01.05.15     Branch

                                                       2.8%
    Santander           Major ISA 2 Year               Fixed paid                Phone
                        Fixed Rate           GBP1      yearly       01.05.15     Branch

                                                       2.75%                     Online
    Principality BS     5 Year Fixed Rate              Fixed paid                Phone
                        Cash ISA Issue 107   GBP1      anniversary  5 year bond  Branch

    Transfer In ISAs
                        Account
    Provider            (Terms &              Minimum
                        Conditions Apply)     Deposit     AER      Bonus   Bonus Period
    Cheshire BS         ISA Saver (Issue 1)   GBP1,000    2.50%    2.00%   31/07/2014
    Santander           Direct ISA Saver
                        (Issue 1)             GBP2,500    2.50%    2.00%   12 months
    Leeds BS            2 Year Base Rate
                        Tracker ISA Issue 12  GBP1        2.25%    N/A     30.04.15
    HSBC                Premier Variable
                        Rate Cash ISA         GBP1        2.25%    1.98%   12 months
    Harpenden BS        Simply ISA            GBP1        2.25%    N/A     N/A
    Earl Shilton BS     Instant Access Cash
                        ISA                   GBP10       2.20%    N/A     N/A

Sourced by http://www.moneysupermarket.com
21.03.2013

Notes to Editors:

MoneySupermarket.com compares (at 27^th Feb 2013)

SOURCE MoneySupermarket.com