The Week Unzipped: Invest before Easter to avoid the Isa blues

THE deadline for Isa applications is just one week away, so savers are being warned not to leave their investing plans until the last minute or they could risk losing, given that the year-end deadline coincides with the Easter weekend.

This year the end of the tax year (5 April) falls on Easter Monday, with many institutions shutting up shop as early as close of play on Thursday 1 April.

This could lead as many as 1.5 million savers to miss out on their tax-free allowance in the light of research from Clydesdale Bank, which found that one in ten savers invest in an Isa less than two days before the deadline.

If you are opening an account or transferring money online then you should be able to do so up until the last moment, provided you are paying by debit card.

However, it is inadvisable to leave it this late, in case further information or documentation is required.

If you wish to operate via the post or a branch then significantly more time is required, not least when opening an account. You will need to provide various types of identification, including a photo ID and something with your address on it, such as a utility bill.

Post may be disrupted over the holiday, and many branches will be closed. But many fund managers, though not all, are accepting applications until the deadline online, or in some cases over the telephone. Alliance Trust Savings will open its Dundee headquarters on Good Friday and Easter Monday to accept Isa subscriptions up to the 5 April deadline. Online subscriptions will be accepted until midnight on the 5 April or 6pm for applications received at the headquarters.

Meanwhile Nationwide has launched a four-year fixed Isa paying up to 4.25 per cent. The account can be opened with 1 and accepts transfers in. For existing customers, whose current fixed-rate Isas are due to mature, Nationwide also offers a three-year fixed Isa paying 4.15 per cent.

For customers able to lock their money away, Yorkshire and Clydesdale banks offer five-year fixed rate Isa at 5 per cent.

Santander is top of the table for easy access with its Cash ISA at 3.5 per cent, though the account does not accept transfers in.

HSBC on track

HSBC has launched two new tracker mortgages. The bank reduced the rate on its a fee-free lifetime tracker mortgage by 0.5 per cent to 4.49 per cent with a 10 per cent deposit. It also introduced a two-year fix at 2.99 per cent with a maximum loan size of 250,000, the new stamp duty threshold. The deal allows loan-to-value of up to 70 per cent and charges a 999 fee.

Wage rise

THE minimum wage will rise by 2.2 per cent to 5.93 from 1 October 2010. The minimum rates for under-21s rise to 4.83 for 18-20 year olds and 3.64 for 16-17 year olds.

For the first time the wages of apprentices will also be guaranteed through the introduction of a 2.50 per hour minimum wage, paid to apprentices under 19 or those over 19 but in the first year of their apprenticeship.