Don't get caught by the early ISA deadline, warns Fair Investment Company
More than a third of investors invest their ISA allowance at the end of the tax year, according to the latest research by Fair Investment Company.
In a quick poll of 50 investors, Fair Investment Company found that 36 per cent made a lump sum ISA investment at the end of the season.
"This research reveals that people really do leave it until the last minute when it comes to ISA investment, which is why it is so important that people are aware of the fact that the ISA deadline is early this year," warns Rebecca Sargent, savings and investments editor at Fair Investment Company.
"Savers normally have until April 5th to invest their ISA allowance, but because Easter is early this year, the tax year has been cut short."
This year, April 5th is on Easter Monday, and because Good Friday is on April 2nd and both are bank holidays the last working day before the year-end is Maundy Thursday, which means the deadline for most applications is April 1st.
Although some providers are making provisions for the early deadline, and some applications can be made up until April 5th – for example, Fair Investment Company's own ISA funds service is open for applications up until 11.55pm on April 5th – Rebecca says act sooner rather than later.
"Use your ISA allowance now to avoid being caught up in the Easter rush; there is no point waiting until April 1st if you don't have to."
Although 36 per cent leave investing in their ISA until the end of the season, 48 per cent make a lump sum payment at the start of the season, which means millions will soon be making the most of their new ISA allowance.
"Look at making your ISA investments for 2009/10 now to ensure you make the most of this year's tax free allowance," says Rebecca, "and then, when April 6th arrives, you can start thinking about how to make the most of your new allowance of £10,200 for the 2010/11 season."