Avoid the Easter ISA rush, ISA savers warned

The tax year end falling across Easter this year could cost savers billions, warn Clydesdale and Yorkshire Banks.

With Good Friday falling on 2nd April and Easter Monday on 5th April, savers have less opportunity to beat the tax year deadline and ISA providers have two days less to process applications and transfers.

Clydesdale and Yorkshire Banks estimate that up to 10% of ISA applications are made in the last two days before the tax year end, which could be almost 1.5 million this year.  If these savers assume they can leave their ISA investment to the last minute, around £4bn of ISA investments could miss out.

The Banks, which launched new 1 & 3 year fixed rate ISAs paying 3% & 5% Gross/AER respectively this week, are already warning customers to avoid missing the deadline and that applications must be received by 1st April in order to be processed.

Steve Reid, retail director, Clydesdale Bank said: "With Easter falling so early this year, if you haven't already done so the opportunity to invest in an ISA this year is that little bit less.  The ISA allowance isn't flexible so beat the deadline and pay less tax."