You are here: Home - Investing - Experienced Investor - How to -

How to use your ISA allowance after the deadline

0
Written by:
12/03/2019
With just weeks to go until the end of the tax year, the pressure is on to use up your ISA allowance.

You can put up to £20,000 into one or several ISAs (remember, you can’t have more than one of the same type of ISA in a single tax year) but you can’t roll over any unused allowance – so use it or lose it.

If you’re going down the stocks and shares ISA route, deciding where to invest your money is never easy. And this year, there’s an added nuisance: Brexit.

One in four investors are still waiting for clarity from MPs on a Brexit deal before they make any investment decisions, according to Interactive Investor.

While waiting for a clearer Brexit picture to emerge is understandable, delaying your decision too long could mean losing your valuable ISA allowance.

Luckily, there is a solution.

Investment platforms allow you to temporarily ‘park’ your money in cash within an ISA. You can then invest it as and when you’re ready.

So, you don’t have to decide straightaway where to invest but you don’t waste any of your allowance either.

However, this shouldn’t be a long-term solution because your money will be earning very little, or in some cases, no interest.

How much does it cost?

We contacted seven major ISA providers to find out how much they charge to leave your money in cash in a stocks and shares ISA and if they pay interest.

AJ Bell – no charge for money held in cash. No interest on £10,000 or less, 0.1% on £10,000-£50,000, 0.15% on £50,000+.

Bestinvest – no charge for money held in cash. Interest of 0.4% below Bank of England base rate.

Fidelity – no charge for money held in cash. No interest.

Hargreaves Lansdown – no charge for money held in cash. Interest of 0.1% on £4,999.99 or less and 0.15% on £5,000+.

Interactive Investor – charge a flat fee of £22.50 per quarter (returned as trading credits) regardless of underlying holdings. No interest.

The Share Centre – £4.80 a month to leave some of allowance in cash. No interest.

Nutmeg – 0.25% management fee. Interest of 0.40%.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • 'Over the last year, the amount of money saved in Innovative Finance ISAs – or IFISAs – has increased by over 700%'- https://t.co/dPjhoorgPp
  • Sainsbury’s and Asda promise £1bn of lower prices if merger goes ahead - https://t.co/pf3D3sPOXb
  • Are you planning to make a last-minute investment into your ISA or SIPP during this tax year? Here are five tips to… https://t.co/lGjHix7F7y

Read previous post:
Are you invested with a dividend hero?

Four ‘heroic’ investment trusts have been increasing their annual payouts to shareholders each year for more than 50 years.

Close