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Investing in an ISA early at the start of the financial year (April 6th) can provide significant benefits. The main benefits of early ISA investing are:

  • An full year of tax-efficient growth on money invested or saved
  • Additional income provided by dividends that are paid throughout the year

It is common for investors and savers to open up or top up an ISA towards the end of the ISA deadline or April 5th, but investing in an ISA early essentially gives their money a longer time-frame to grow.

The beginning of a new financial year often sees financial services providers commence marketing campaigns on the benefits of investing early, giving more time for investors’ money to potentially grow.

While most benefit will be felt from using the whole ISA allowance at the start of the financial year, it may not always be possible for investors to do this due to a lack of lump sums being available.

Therefore a possible solution is regular investing via drip-feeding money into an ISA each month via direct debit.