Over the last ten years, investing a full ISA allowance at the start of the tax year could have resulted in a saver earning almost £20,000 more than if he/she had waited until the last-minute to invest

An extra years’ worth of investment could have also earned the saver an additional £1,400 in dividends, according to analysis from Hargreaves Lansdown.

Providing that the saver had invested in the Legal & General International Index fund and that they invested their full allowance each year, someone who began investing on the first day of the tax year would have earned just over £221,500 over the ten year period by the end of the 2018/18 tax year. However, those who had left their investments until the last-minute would have earned just over £202,500; £19,000 less.

Hargreaves Lansdown personal finance analyst Sarah Coles commented: “The earlier you use your ISA allowance in the tax year, the better. Your investments are sheltered from tax straight away, and have longer to grow. Over the long term this can have an impressive impact on returns.

“Early bird investors gain up to a whole year of dividends and potential growth in the stock market ahead of those who leave it until the last minute. 12 months of dividends from a typical equity income fund alone could be as much as £1,400 for a couple who fully use their ISA allowance.

“ISAs are one of the simplest ways to save and invest. They have also become more and more attractive. Since their launch in 1999, the annual allowance has steadily increased from the original £7,000 to £20,000; so investing early is more rewarding than ever.”

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