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Making the most of past, present and future ISA allowances at Zopa

The end of the tax year is approaching fast, so it’s a good time to make sure your ISAs are all set.

Here’s three ways you can do that at Zopa:

1) Revisit the past

Many old cash ISAs are currently earning historic lows of less than 1%. But things don’t have to stay that way for your portfolio.

Some ISA providers, including Zopa, offer what’s called a transfer-in. This means you can move money from one ISA provider to another without losing its tax-free status, or impacting your annual ISA allowance. If you find a new provider offering better rates of return (and risks you’re comfortable accepting), this means you can make your old ISA pots work harder.

So, if you have £7,000 in a cash ISA from 2014, it probably isn’t earning much interest any more. But, if you’re happy to take on a bit more risk in exchange for higher returns, you could move it to a Zopa ISA and earn up to 4.6% on that money – still tax-free!

Find out more about transfers-in at Zopa.

2)  Make the most of the present

Each year, every UK adult gets an ISA allowance – this currently stands at £20,000 and will remain the same in 2018/19. However, if you don’t use it then it doesn’t carry over – so if you have the money and haven’t hit your ISA-able £20,000 limit, you should look at your options now or risk losing some tax-efficient goodness.

3) Think about the year ahead

With the new tax year fast approaching on 6 April, you may be thinking about where to put your 2018/19 allowance. A Zopa IFISA is a great addition to an ISA portfolio, offering better returns than cash (for more risk) and more reliability than volatile stocks & shares ISAs.

Our IFISA works in the same way as our non-ISA investment products, and offers the same rates (4.0% in ISA Core and 4.6% in ISA Plus). And when your money is in a Zopa ISA, it will stay earning market rates for as long as it’s reinvesting. We aren’t tempting you in with a higher rate that will drop after year one – our business model simply doesn’t work like that.

You can find lots of information on our IFISA here.

Our team can talk to you about your options at Zopa. Give them a call on 020 7291 8331 or send an email to contactus@zopa.com.

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