Read more: Building Society launches competitive ISA with 4.15% interest
“If you want to make use of this flexibility, just make sure you are keeping track of what you’ve paid in and where, to make sure you don’t go over your ISA allowance.”
But this is not the only mistake Brits are making. He also says that you could be picking the wrong type of ISA.
While you may have chosen a Cash ISA, if you’re saving for the long term, an investment ISA could be a better choice.
He added: “You may have picked a Stocks and Shares ISA to save for the deposit for a first home, but you could have benefitted from the 25% government bonus available on the Lifetime ISA.
“Everyone loves free money, but only Lifetime ISA holders get the extra cherry on the cake.
“Equally, if you’re saving for your child, paying into a Junior ISA might be better than saving the money into your own ISA.
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“That’s because your child gets their own allowance in a Junior ISA, so there is no reason to share your ISA allowance with them.”
Everyone over the age of 18 can pay up to £20,000 into their ISA each tax year, with the Lifetime ISA capped at £4,000.
You should make sure you’re making the most of this allowance as much as possible, as if you don’t use it, you lose it – you can’t carry forward any unused allowances to future years.
He added: “Investors with spare money to save and any unused ISA allowance for the current tax year should consider using it before the 5 April deadline.”
