Get in early to make the most of this year’s ISA

It’s the beginning of the tax year and using your new £20,000 ISA allowance, sooner rather than later, could help you achieve better returns in the long run. Generally, the earlier in the tax year you start your ISA, the better, as any investment returns you might make have longer to compound. Investing now gives you nearly an entire year of extra opportunity.

Open an Investment ISA

Why invest early?

An ISA investor who used their ISA allowance at the start of every tax year since 2008 to invest in a fund tracking the FTSE All-Share Index could now be over £10,000 better off than someone who only invested on the last day of the tax year. Of course it’s important to remember past performance is not a guarantee of future returns and the value of investments can go down as well as up, so you may get back less than you invest.

See what a difference early investing can make

Three investors contribute £123,560 to their ISAs over a 10 year period. Find out how their investment planning affects their investments over time by clicking the three options below:

Investing £123,560 in an ISA between 2008/9 and 2017/18 but at different times in the tax year.

Start Tax year End

Early Shirley used her full ISA allowance at the start of each tax year. Over time, she is over £10,000 better off than our last minute investor, Lara.

Monthly Monty split his ISA contribution into 12 equal monthly payments. Even as a regular saver, Monthly Monty is still over £6,500 better off in the long term than our last minute investor, Lara.

Last-minute Lara left it until the last day of each tax year to invest. Her gains lag behind both Monty’s and Shirley’s.

Total contributions for all three investors is £123,560
Investor Final investment value

Early Shirley

£180,298

+46%

Monthly Monty

£176,962

+43%

Last-minute Lara

£170,128

+38%

Investor Total contributions Final investment value Gain (%)

Early Shirley

£123,560

£180,298

46%

Monthly Monty

£176,962

43%

Last-minute Lara

£170,128

38%

Past performance is not a reliable indicator of future returns.
For illustrative purposes only. This is a hypothetical illustration based on the performance of the FTSE All-Share Index between 6 April 2008 and 5 April 2018 and does not take into account the impact of any charges or fees.
Source: Datastream, 06/04/18.
Basis: bid-bid with income reinvested.

Ready to invest?

A Fidelity Investment ISA is an easy-to-manage, tax-efficient stocks and shares ISA. It’s a great way to invest your ISA allowance this tax year, and you can start investing in our broad range of investment options in just a few easy steps.

Open an Investment ISA

Please remember that the value of investments can go down as well as up, so you may not get back the amount you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future.