Smart spring-time tips to help you top up your ISA
Spring may not be a season you typically associate with savings. But with Christmas a distant memory and energy bills generally lower, you might find it’s a good time to top up your savings, particularly your Individual Savings Account (ISA).
An adult cash ISA has a tax-free allowance of up to £20,000 and if you don’t use your full allowance before the end of the tax year, it doesn’t carry over into the following year. In other words? It’s use it or lose it.
Rather than topping up in one lump sum just before the end of the tax year on April 5th, you might want to get a head start by making deposits to your ISA savings earlier throughout spring.
Plus, once the new tax year rolls around you can start saving from April 6th for the next year’s tax year end. Here are some saving tips to help you do just that:
Out with old… it’s time to get rid of winter coats, hats, scarves and boots. If you want to make a little extra money from your winter clothes, you might like to sell them on reselling platforms and apps.
Rather than putting your earnings towards some new season clothes, you could consider popping the money in your ISA instead.
If you’re planning to get away this summer, consider using travel comparison sites to suss out a bargain.
One of the biggest ways to save may be travelling out of season. You may find you get a better deal by travelling when others can’t – for example, when the children return to school.
According to Which? the most expensive weeks for taking a summer package holiday are from 27th July to 3rd August and from 3rd to 10th August. Meanwhile, the cheapest week to travel in summer is 24th to 31st August. Plan your holiday accordingly and you could save.
Summertime is a great time to get outdoors and that means a wealth of cheaper – and often free – social activities to enjoy.
Instead of a three-course dinner at an expensive restaurant, you could have a BBQ in your garden. Rather than heading out for lunch, you could pack a picnic and head to your local park.
If you normally spend the weekends shopping, going to the cinema, or catching up with friends over a drink, you might like to go for nature walks and freshwater swims or invite friends for a friendly bit of sport in your garden or at the park.
Eating in-season fruits and veggies is good for your waistline as well as your wallet, as they have lower transport and production costs.
Not sure what to stock up on? In the UK, foods like beetroot, potatoes, radishes, and spring greens tend to be in season in April and May.
Meanwhile, blackcurrants, cherries, raspberries, rhubarb, and strawberries are in season in June and July.
Buying local produce is another way to keep your food costs down. Or, if you’re green-fingered, consider growing some of your own fruits and vegetables.
On cold, dark mornings, taking the car is often an obvious – and welcome – choice, but there are cheaper ways to travel. If weather (and distance) permits, consider taking your journey on foot or by bike.
According to GoCompare, the average fuel spend in the UK is £1,154 a year, so if you can, you might like to consider occasionally leaving the car at home.
However you choose to save this spring, if you’re putting your money in an ISA, don’t forget to top up before April 5th. Doing so means you can make the most of your tax-free allowance.
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