Best Time to Invest in an ISASo what’s the best time to invest in an ISA? Being an ISA early bird and invest at the beginning of a new tax year instead of at the end can really pay off…

ISA Deadlines

By the time you read this article the deadline to make your 2011/12 ISA investment will have already passed and if you didn’t take advantage of your tax free allowance then that opportunity has gone forever.   There are a whole host of reasons why, without fail, this happens each year.  It could be the bewildering choice of ISA providers all vying for your attention, having the funds available to invest, or perhaps you just clean forgot.

One thing it does highlight is that when presented with a time limit our natural tendency is leave everything to the last minute but provided we meet that final deadline then we feel that we have not lost out.  The investment companies even pander to this trait.  Just compare the amount of ISA marketing that floods the pages of the press each February and March with the rest of the year.

Early ISA Investment Benefits

If you have the funds available to invest and intend making use of your ISA allowance it therefore seems bizarre that you would leave everything to the last minute and miss out on the opportunity to be invested for the maximum possible period.  It got us thinking what benefit, if any, would have been gained over the past few years from making an ISA investment at the start of the tax year rather than the end.

For the purpose of the exercise we assumed