What is ISA season and why does it matter for your savings?

At a glance

• ISA season takes place throughout March and April as one tax-year ends and another begins
• For existing savers, ISA season is an important reminder to use up your allowance before the end of the tax-year
• If you’re considering opening an ISA, the best rates can typically be found during ISA season.

What is ISA season?

ISA season is a time when many providers launch new products or offer their most competitive rates in an attempt to entice customers looking to use up the last of their allowance before the tax-year ends.

Some providers also try to attract ‘early-bird’ savers wanting to invest their allowance quickly once it resets at the start of the new tax-year.

Can I carry over my unused ISA allowance to the next year?

No, you can’t carry across any unused ISA allowance into the next tax-year.

The ISA allowance is the combined total you can save across all ISAs within a single tax-year and currently stands at £20,000.

It automatically resets at the start of each new tax-year which means you can’t carry across any unused allowance.

Those looking to shelter as much of their hard-earned cash from tax as possible should therefore look to utilise their allowance before the tax-year ends on 5 April.

When is ISA season?

While there are no set dates for ISA season, it typically occurs annually throughout March and April as one tax-year ends (5 April) and another begins (6 April). However, it can start as early as February depending on the state of the savings market and customer appetite.

Why is ISA season important for your savings?

ISA season is a helpful reminder to ‘use or lose’ your annual allowance before the tax-year ends; as any outstanding amount can’t be carried across into the next tax-year, failing to use your allowance could mean missing out on tax-free interest on your savings.

But, even if you already have an ISA, the season also presents an opportunity to enhance your savings by switching to another provider offering more competitive returns.

Should you open an ISA?

Anyone can open an ISA but those who stand to benefit the most are savers who earn enough interest from a traditional savings account to breach their Personal Saving Allowance (PSA).

While the £1,000 yearly limit on earning tax-free interest will be sufficient for some basic-rate taxpayers, frozen Income Tax bands and high interest rates mean many are being dragged up the tax ladder and are seeing their allowances slashed:

For additional-rate taxpayers, as well as basic and higher-rate taxpayers who exceed their savings allowance, an ISA is just one way to shelter returns from the taxman.

Can you open an ISA any time of the year? 

You can open an ISA at any point in the year – providing you haven’t already used up your entire ISA allowance.

If you’ve already maxed out your ISA allowance, you’ll need to wait until it automatically resets at the start of the next tax-year (6 April) before opening another account. However, this is often when some of the most competitive rates can be found, as providers know there’ll be many savers eager to use their refreshed allowance.

Can I open multiple ISAs during ISA season?

There’s no limit on the total number of ISAs you can open during ISA season - or any other time of the year, for that matter.

That being said, some providers may impose their own restrictions on the number of accounts you can open and pay into with them, so it’s important to check any terms and conditions before applying.

There are also additional rules that apply to Lifetime ISAs and Junior ISAs; find out more with our guide to opening and managing multiple ISAs.

Am I allowed to contribute to my ISA at any point during ISA season?

Whether you can contribute to an existing ISA during ISA season depends on the type of account you hold.

More flexible accounts, such as easy access or notice ISAs, generally allow additions at any time without restriction. In contrast, some fixed ISAs only permit further deposits for a limited window after opening, while others prohibit adding to your pot entirely. For specific account information, visit our charts and select ‘view further details’ next to a listing, or reach out to your provider.

But, when adding to your account, be careful not to exceed your £20,000 annual ISA allowance.

What happens if I don’t contribute to an ISA during ISA season?

You don’t have to contribute to an ISA during ISA season, but bear in mind this could mean missing out on more competitive rates or attractive new deals.

Furthermore, if you don’t pay into an ISA at any other time of the year (and instead hold your money in a traditional savings account), you risk being taxed on the interest earned if you exceed your PSA.

What time of year is best to open an ISA?

If you don’t already have an ISA, ISA season could be a good time to consider opening one as there can be plenty of attractive rates to choose from. Furthermore, by opening an ISA at the start of a tax-year, you’ll have the full financial year to use up your allowance.

However, competitive rates and their timings are never guaranteed, so there isn’t necessarily a best time to open an ISA. As it’s possible for providers to amend their offerings at other points in the year, it’s good practice to regularly review top rates and open an account when it’s right for you.

Are there any special deals during ISA season?

It’s not just competitive rates or new products to look out for; platforms and providers sometimes introduce cashback offers and prize draws to encourage deposits.

While such deals may increase in prominence towards the end of the tax-year, they’re not exclusive to ISA season and it’s possible for offers to appear at other times.

What happens when ISA season ends?

While the market may be less competitive once ISA season ends, there’s nothing to stop providers from upping their rates or launching attractive new products throughout the rest of the year.

If you opened an ISA during ISA season, it’s important to review your account and the top rates regularly to make sure you’re receiving a competitive return – particularly if it offers a variable rate (which can go up or down).

Quick recap: How to make the most of ISA season:

The end of one tax-year and the start of another can be an important time of year for your savings. Below are some steps that could help you make the most out of ISA season:

Step 1: Take stock of your current situation

Before ISA season gets underway, it’s a good idea to take stock of your current situation. If you’re not at risk of earning enough interest to exceed your Personal Savings Allowance (and having to pay tax on your savings), you may find that you don’t actually need an ISA and a traditional savings account could offer better returns.

Step 2: Monitor the best ISA rates

Competition in the ISA market usually intensifies throughout March and April as the end of the current tax-year approaches. However, ISA season can start as early as February so it’s important to keep a close eye on the best rates to avoid missing out.

Step 3: Don’t leave it until the last minute

Keep in mind that offers can be withdrawn just as quickly as they appear, so you may need to act fast to take advantage of an attractive deal.

It should also be noted that, while the tax-year officially ends at midnight on 5 April, many providers will have their own deadlines in place to open an account and/or make final deposits. Any money that isn’t visible in your account at 11:59pm on 5 April is unlikely to form part of the current tax-year’s ISA allowance, so it’s wise not to leave opening or adding to an ISA until the last minute.

Step 4: Review your accounts regularly

Your work isn’t done once ISA seasons ends; to make sure you continue to earn a competitive return, it’s important to review your accounts regularly and consider switching if more attractive options are available. Remember, providers can launch new accounts or increase their rates at any time of the year (not just ISA season!).