Halifax alerts customers about upcoming ISA allowance reset

Halifax is warning customers that they have limited time to use their tax-free ISA allowance. The deadline is April 5, and after that, any unused allowance for the 2024/25 tax year will be lost. Customers can save up to £20,000 each year in ISAs. Halifax sent emails to remind customers to take advantage of this opportunity soon. The bank encourages savers to plan ahead to avoid paying more tax than necessary. Halifax offers various ISA options. One is the one-year ISA Saver Fixed, which has a 4.25% interest rate but requires a minimum deposit of £500. Withdrawals made before the term ends may incur penalties. Another option is the ISA Bonus Saver, which can be opened with just £1 and offers a monthly interest rate of 3.40%, with some limits on withdrawals. For those with longer-term savings goals, the Stocks and Shares ISA is a strong choice. It provides a tax-efficient way to invest, allowing savers to grow their money without paying UK income or capital gains tax. Lastly, Halifax also offers a Ready-Made Investment ISA, particularly aimed at online banking customers who may not know how to invest. This option simplifies the investment process by providing pre-selected choices.