One week left to max out an Isa for this year

Savers and investors have just a week left to use the £20,000 they can put into their Isa before the end of the financial year on April 5. Isa providers have called on the Government to extend this year’s deadline because of the coronavirus crisis, however. One peer-to-peer firm, Sourced Capital, said people should be given until Oct 1 to use their allowances for the 2019-20 tax year.

But at the time of writing there are no plans for a delay, meaning you have just one week to put cash into pensions or Isa accounts. Investing in the stock market in the current climate might be a step too far, but that doesn’t mean you shouldn’t make the most of your allowances. Most people can save £40,000 a year into a pension – which can be offset against income tax – and £20,000 into a range of Isas. Cash Isas can provide a guaranteed, if meagre, income.

Rates on cash Isas are being cut after the Bank of England dropped its key interest rate to a record low of 0.1pc. The best rate for a one-year fixed Isa is 1.35pc from Virgin Money, while the best five-year fixed cash Isa is from Paragon Bank and pays 1.6pc. Deals are changing rapidly.

Eleanor Williams of Moneyfacts, the financial analyst, said: “If savers are hoping to secure a new Isa deal, the time to act is now. Things are changing rapidly at the moment, and those who want to secure a deal would do well to act quickly before their chosen account is withdrawn.”

Although fixed-term deals offer higher rates, savers must be happy to lock their money away for a period of time. The best flexible rate is 1.35pc from Al Rayan Bank.

Time is running out for you to use your pension and saving allowances for the 2019-20 tax year, says Jonathan Jones

For the best returns a stocks and shares Isa should remain the first choice for those able to lock their money away for several years.

But Darren Cooke of Red Circle, a financial adviser, said it was no surprise that people were reluctant to make new investments at present.

“With global markets slumping and a recession seemingly inevitable it is understandable that people are reluctant to make new investments now,” he said.

However, long-term investors can take the opportunity to buy now at a

‘If savers are hoping to get the best rate on their cash Isa the time to act is now’