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

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