Savvy Savers Rush For Isas As Tax Year Ends

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Savvy savers have only hours remaining to pocket a tax-free windfall by depositing money in Isa accounts.

With the 2011-12 tax year ending at midnight, the cut-off point will be reached for the annual allowance to be deposited.

Jasmine Birtles, a personal finance expert at moneymagpie.com, told Sky News Online: "There is still time to make the most out of your Isa and make some money before the deadline at midnight.

"It's not too late, if you want to transfer extra money in to your Isa account you don't have to go in to a branch.

"You can phone up most companies, such as Virgin or Legal & General (LSE: LGEN.L - news) , and say that you would like to add some extra money in to your Isa account, and it will be done straight away."

The use-it-or-lose tax year Isa allowance is currently £5,340 and on Good Friday investors will only be allowed to deposit funds under the 2012-13 tax year.

Ms Birtles added: "There are also ways to do last-minute transfers online, depending on the company, so it's worth checking that option.

"The minimum amount you will need to transfer in to your Isa will depend on the company."

Even if investors cannot afford to deposit the full figure tonight, any amount invested will reduce tax liabilities.

April is traditionally the best deal month for Isas as banks and building societies seek to lure deposits from the public.

Attractive deals are often given to new customers, with interest rates far above those given for existing clients.

"But if you miss the deadline, you needn't worry, it's possible to switch Isas and get your money transferred to another bank," Ms Birtles said.

"The best thing to do is to have a look at which rates would suit you and then transfer your money to a company that offers the best rates."

The 2012-13 tax year Isa allowance will be upped by the Government to a limit of £5,640.