Foster Denovo|News & blogs|Opinion|ISA – The early bird catches the worm

ISA – The early bird catches the worm

It’s never too early to invest in a stocks and shares ISA

The new tax year is now well underway, but have you thought about investing your ISA allowance of £15,240 for 2016/17 yet? If you haven’t, it could be time to consider it.

If you become an early ISA investor you could be better off than someone who leaves it until the very end of the tax year to make their investment.

According to the latest research from Fidelity Personal Investing, people who make their investment as soon as possible in the new tax year since 2005 could now be over £8,000 better off than those who leave it until the last minute to invest.

ISA - the early bird catches the worm


Source: Fidelity Personal Investing, April 2016. This is a hypothetical illustration based on the performance of the FTSE All-Share Index between 6th April 2005 and 5th April 2016 and does not take into account the impact of any charges or fees. It’s important to remember past performance is no guarantee of future returns and the value of investments can go down as well as up.

The figures in the table above show how investing a lump sum at the start of the tax year could allow you to have better results. Investor A,  who invests the full ISA allowance on the first day of each tax year, is more than £8,000 better off than Investor C, the last minute, lump sum investor.

Of course, not everyone will have a lump sum to invest at the beginning of the tax year, but it’s worth noting that Investor B, the regular monthly saver was still better off than Investor C who left it to the last minute.

Investing at the start of the tax year gives your money an additional 12 months of tax-efficient growth potential.


The value of your investment can go down as well as up and you may not get back the full amount invested.

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