You have thirteen days. That's it. On 5 April, the current tax year ends, and your 2019/20 ISA allowance vanishes. Gone. You can't carry it over, roll it forward, or bank it for later. It's strictly use-it-or-lose-it.
If you've been meaning to open a cash ISA, top one up, or move some stoozing profits into a tax-free wrapper — now is the time. Not next week. Now.
I realise the timing feels absurd. We're in the middle of a global pandemic, markets are in freefall, and half the country is trying to work out whether they'll still have a job next month. But here's the thing: sorting your ISA takes about fifteen minutes, and the tax-free benefit lasts for years. It's one of those rare financial tasks where a tiny amount of effort today pays dividends (sometimes literally) for a long time.
Let's run through what you need to know — and more importantly, what you should actually do before 5 April.
What's the ISA Allowance and Why Does It Matter?
Every UK adult gets a £20,000 ISA allowance per tax year. That's the total amount you can put into ISAs across all types — cash ISAs, stocks and shares ISAs, innovative finance ISAs, and Lifetime ISAs (which have their own £4,000 sub-limit).
Any interest, dividends, or gains earned inside an ISA are completely tax-free. No income tax on the interest. No capital gains tax on growth. Nothing to declare on your tax return.
Now, you might be thinking: "I've got a Personal Savings Allowance that already gives me £1,000 of tax-free interest — do I really need an ISA as well?"
Fair question. For most basic-rate taxpayers right now, the PSA does cover a lot of ground, especially with savings rates where they are. But there are good reasons to use your ISA allowance anyway:
The PSA could shrink or disappear. It's a relatively new thing (introduced in 2016) and governments have been known to tinker with tax perks. Your ISA protection, once in place, is permanent.
Higher-rate taxpayers only get £500. If you're earning above £50,000, or expect to in the future, your PSA halves. Additional-rate taxpayers get nothing at all.
ISA allowances compound over the years. You can't go back and use last year's allowance. But if you put in even £5,000 a year, after five years that's £25,000 sheltered from tax permanently. After ten years, £50,000. The earlier you start filling up your ISA, the bigger the tax-free pot you're building.
Stoozing profits add up. If you're running a stoozing strategy — parking money in savings while your 0% card handles your spending — those interest earnings are growing. Once they breach your PSA, you'll want them inside an ISA. Might as well start moving money there now. If you're new to this approach, our guide to how stoozing works explains the mechanics.
What to Actually Do Before 5 April
Right, let's get practical. Here's what to do depending on your situation.
If you have spare cash sitting in a current account or easy-access saver
Open a cash ISA and transfer what you can. You don't need to use the full £20,000 — putting in £500 is better than putting in nothing. Every pound inside an ISA is a pound earning tax-free interest forever.
Look for the best easy-access cash ISA rate you can find. Rates have been dropping recently (and the Bank of England just cut the base rate to 0.1%, which won't help), but a cash ISA still beats leaving money in a non-ISA account earning the same rate, because you're using up your allowance.
Don't overthink this. A slightly lower rate inside an ISA is often better than a slightly higher rate outside one, because you're locking in the tax-free status for good. You can always transfer the ISA to a better-paying provider later without losing the tax protection.
If you're running a stoozing strategy
This is where ISA season gets interesting for StoozeMax readers. If you've got money parked in a savings account while your 0% credit card handles your spending, consider whether some of that cash should move into a cash ISA before the deadline.
The trade-off: your current savings account might pay a marginally better rate than the best cash ISA. But the ISA gives you permanent tax-free status on whatever you put in. If you're stoozing with decent sums — say £5,000 or more — the long-term tax benefit of sheltering that money is worth a small rate sacrifice now.
Practical example: Say you've got £8,000 sitting in an easy-access account at 1.3% from your stoozing. You move £5,000 of it into a cash ISA paying 1.1%. Yes, you lose 0.2% on that £5,000 for the remainder of the year — roughly £10. But that £5,000 is now permanently tax-sheltered. If rates rise in the future (and they will eventually), every penny of interest on that money is yours. Over the years, that £10 "cost" becomes trivial compared to the tax saved.
If you've already used some of your allowance
Check how much you've used. You might have opened an ISA earlier in the tax year and forgotten about it. You can top it up right until 5 April, as long as you stay within the £20,000 total across all your ISAs.
Important: You can only pay into one cash ISA per tax year with the same provider. If you want to open a new cash ISA with a different provider, you can — but your total contributions across all ISAs still can't exceed £20,000. (The old one-cash-ISA-per-year rule was relaxed a few years ago, so you can now contribute to multiple cash ISAs, but always double-check the provider's terms.)
If you have absolutely nothing spare
That's fine. Don't go into debt to fill an ISA — that defeats the entire point. But consider whether you could redirect even a small amount. Got £100 that's doing nothing? Put it in. The principle matters more than the amount. Building the habit of using your ISA allowance each year is what creates real wealth over time.
And if you're looking for ways to free up some cash before the deadline, a bank switch bonus could help. Some current offers are paying out within weeks of switching. Check our live offers page to see what's available — you might be able to grab a bonus and funnel it straight into an ISA.
How ISAs Fit Into Your Wider Strategy
If you're following the StoozeMax approach — combining bank switching, stoozing, and regular savers — then ISAs are the final piece of the puzzle. They're where you shelter the profits.
Think of it this way:
- Bank switching earns you lump-sum bonuses (check our eligibility checker to see which you qualify for)
- Stoozing generates interest on money you'd have spent anyway
- Regular savers give you guaranteed returns on monthly deposits
- ISAs protect all of the above from tax
Without the ISA step, you're leaving your earnings exposed. Right now, with rates low and your PSA likely covering everything, the tax exposure might be minimal. But you're building for the future. When rates recover — and when your combined savings from switching, stoozing, and regular savers start to grow — you'll be glad that money is already inside a tax-free wrapper.
If you're new to the StoozeMax approach, our switching guide is the best place to start. Get a couple of bank switches under your belt, open a regular saver if your new account offers one, and then use your ISA allowance to shelter the profits. It's a simple system, but it works.
The Coronavirus Complication
I'd be ignoring the elephant in the room if I didn't mention it. We're in extraordinary times. Markets have crashed, jobs are uncertain, and "save for the future" feels tone-deaf when people are worried about next month's rent.
A few thoughts on this:
If you're worried about your income, keep your cash accessible. An easy-access cash ISA is fine — you can withdraw whenever you need to. Don't lock money into a fixed-rate ISA if there's any chance you'll need it in the next few months.
Don't panic-invest. If you were thinking about a stocks and shares ISA, be honest with yourself about your risk tolerance right now. Markets are volatile. If you're investing for 10+ years, buying when prices are low is mathematically sensible. But if watching your ISA balance drop 30% would keep you up at night, cash is perfectly fine. There's no shame in prioritising sleep.
The deadline still matters. Whatever's happening in the world, 5 April isn't moving. If you can spare anything at all, even £50, it's worth putting into an ISA before the deadline. You're not going to regret having more money in a tax-free account.
Bank switch bonuses are still paying out. Despite everything that's happening, banks are still honouring their switching offers. If you've been sitting on a switch, now's a good time to get it done — you could have a bonus in your account within a few weeks, and you could put it straight into an ISA before the deadline.
Quick ISA Deadline Checklist
Here's your action plan for the next thirteen days:
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Check your remaining allowance. Log into any ISAs you've used this year and add up your contributions. Subtract from £20,000 to find your remaining space.
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Decide how much you can contribute. Be realistic. Don't overstretch — but don't leave money on the table either.
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Open or top up a cash ISA. If you don't have one, most can be opened online in minutes. Look for the best easy-access rate you can find.
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If you're stoozing, consider moving some profits into the ISA. Even a partial transfer is worth it for the permanent tax-free status.
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Set a reminder for 3 April. Give yourself a buffer. Don't leave it until the last day — systems can be slow, and transfers can take time.
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Start a bank switch if you haven't already. You might not get the bonus before 5 April, but you'll have it shortly after — and you'll be set up for next year's ISA season. Our live offers page has the latest deals.
Common Questions
Can I transfer an existing savings account into an ISA? Not directly. You can't convert a normal savings account into an ISA. You need to open an ISA and deposit cash into it (within your allowance). However, you can transfer between ISA providers without it counting towards your annual allowance — so if you've got an old ISA earning a terrible rate, transfer it to a better one. Just make sure you use the official ISA transfer process rather than withdrawing and re-depositing, or you'll lose the tax-free status on that money.
Does money from bank switch bonuses count towards my ISA allowance? The bonus itself doesn't go into your ISA automatically — it lands in your current account. But you can then move that cash into your ISA, and yes, it counts towards your £20,000 annual allowance. The bonus is just regular cash income at that point. (And yes, switch bonuses are technically taxable income, though the PSA usually covers the tax.)
Can I open a cash ISA and a stocks and shares ISA in the same tax year? Yes. You can contribute to one of each type per tax year (cash, stocks and shares, innovative finance, Lifetime). Your total across all of them can't exceed £20,000. So you could put £15,000 in a cash ISA and £5,000 in a stocks and shares ISA, for example.
What happens if I miss the 5 April deadline? Your 2019/20 allowance disappears permanently. You'll get a fresh £20,000 allowance for 2020/21 starting on 6 April, but you can never go back and use this year's. That's why it's worth putting in whatever you can, even if it's a small amount.
Is it worth opening an ISA just for a small amount like £100? Yes, genuinely. The amount matters less than the habit. Once you've got an ISA open, it's easy to add to it throughout the year. And that £100 is permanently sheltered from tax, no matter how much it grows in the future. Start small, build the habit, and your future self will thank you.
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