Investing in an ISA is a great way to build up your savings. Research3 looking into the savings habits of hypothetical stocks and shares ISA investors has demonstrated that the earlier in the tax year you invest, the better off you’ll be.

According to the report, based on the performance of the FTSE All-Share Index, ‘Early Shirleys’ who have invested their full ISA allowance on the very first day of the tax year for the past 20 years would be £12,000 richer than ‘Last Minute Laras’, who waited to invest until the end of each tax year.

The study also looked at ‘Monthly Monty’, who has invested according to a monthly savings plan. By paying in regular instalments, he would also reap better returns than if he’d invested at the last minute. Splitting your investments in this way over the 20-year period would still leave you £7,496 better off than a ‘Last Minute Lara’.

3Fidelity International, April 2020

It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.

Tax and Estate planning are not regulated by the Financial Conduct Authority

The value of pensions and investments can fall as well as rise. You may get back less than you invested.

Will writing is not regulated by the Financial Conduct Authority. 

cafs logo

Fill in the form below and one of our experts will be back to you within 24 hours.