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Your ISA – Lump sum or regular savings

20th July 2018

The good news is that since 6th April you can use this year’s ISA savings allowance to put your hard-earned cash to work in a tax-efficient way. The 2018–19 allowance is a generous 20,000, and it makes sense to take advantage of this savings opportunity as soon as possible in the year, rather than risk losing your entitlement if you forget and miss the tax year end deadline.
The longer your money is in your ISA, the more opportunity for interest and growth.

If you’re planning to use your ISA allowance this tax year, it’s worth remembering that the longer your money is saved or invested, the more time it has to produce tax-free returns.
If you’re thinking of putting your ISA subscription into the stock market but are worried about volatility that stocks and shares experience, then you can always choose to make regular contributions. This approach is called ‘pound-cost averaging’ and means that you don’t have to worry about getting the timing of purchases exactly right, and there’s no need to constantly watch markets to invest at the right moment.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

This article is purely for information purposes and does not constitute advice based on your individual needs and circumstances.