ISA deadline 2018 normally causes a saver scramble and Sky News presenter Sarah-Jane Mee asked the expert to reveal the top tip for people looking to get the best deal.
Money Saving Expert editor Guy Anker, said: “The top tip for most people, there isn’t actually a big rush today because the ISA allowance is now £20,000, but look for the best account you can get.
“If you need an ISA and you are close to the limit go for it today.”
Sarah-Jane Mee then urged savers to just put their money into an ISA before the time runs out and worry about it at a later date.
The ISA allowance is issued on a “use it or lose it basis”.
Mr Anker, continued: “Historically the panic was because a lot of people put money in a tax ISA.
“Now most people do not pay tax on their savings because there is something called a personal savings allowance which allows basic rate tax payers to earn £1000 of interest tax-free or £500 for higher rate payers.
“If you earn over £150,000 a year you do not get that allowance.
“In many cases, if you do not want to take any risk, the best savings rate are not on cash ISA’s but are on just standard savings accounts.”
Savers typically leave it to the wire, with today’s date of April 4 peak Isa date two years ago, according to fund manager Fidelity.
Associate director for personal investing Ed Monk said: “If you haven’t used this year’s Isa allowance you are not alone and you still have time to invest.”
April 5 is also the final day to use the lump sum mechanism to reduce inheritance tax liability on your estate for the current tax year.
Hannah Maundrell, Editor in Chief of money.co.uk said: “The end of the tax year is upon us which means you have until midnight to top up your ISA.
“Gone are the days where there was a mad rush to make the most of ISAs, with underwhelming rates giving savers no more reward than a standard savings account.
“Most people are no longer paying tax on their savings anyway these days due to the personal allowance, so it’s products that offer something extra, like the Lifetime, Help to Buy and Junior ISAs that catch the eye.
“Each have different incentives depending on your age and circumstances. The one that will be best for you depends on the stage of life you are currently at.
“There are other ways to use your tax-free ISA allowance like investing your money, but this does put your capital at risk and you may get back less than you originally invested so they won’t be right for everyone.”
You can give away £3,000 worth of gifts each tax year known as your annual exemption.
Savers can also make a one-off tax-free wedding gift of up to £5,000 to your children and up to £2,500 to grandchildren or great-grandchildren.
Chris Atkinson, head of consumer distribution at Zurich, said: “The gifts can also be carried forward for one year, so if you didn’t do this last year, then you can as a couple, make £12,000 worth of gifts before April 6.”
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