ISA investors have been told not to rest on their laurels if they want to extract the most benefit from their tax free savings allowance.
Despite the recent squeeze on household finances, savers pledged an increasing amount of funds to stocks and shares ISAs in the last tax year, according to Willis Owen.
With inflation still double the target level of 2%, and the Bank of England unwilling to put economic growth at risk by raising interest rates in response, many people are seeing their hard-earned wealth eroded by savings accounts paying low interest.
As the quest for returns to outpace inflation has intensified, it appears more people have been turning to stocks and shares ISAs.
"Clearly the attraction of the tax-free wrapper offered by investment ISAs, and the potential for growth, is convincing many that leaving their money to stagnate in a high street bank account is not the option for them," said Alan Easter, director of the discount broker.
"The most important message for investors is to take advantage of the new ISA allowances as soon as possible and not leave it until the end of the tax year."
Since the start of the new tax year, the overall ISA allowance has increased to £10,680, which equates to a regular contribution of up to £890 a month.
If you don't have a lump sum to invest then drip feeding money into the market is a great way to build up your savings pot.
However, it is vital to give proper thought over which type of fund to invest in.
A recent study found that most equity ISA investors show little interest in managing their ISA holdings.
One in ten ISA investors admitted it takes only 'a matter of minutes' for this vital decision to be made.
If you're unsure as to where to invest, Skipton Financial Services will be able to help.
They can compare over 1,100 ISAs and funds from over 60 providers – if you need help in choosing the right investment, call Skipton Financial Services free on 0800 731 5342
A product such as the Baillie Gifford Investment Trust ISA also offers access to a wide range of investments and funds.
Looking for a Cash ISA - Compare cash isa rates and best isa rates for transfers Request a FREE ISA Savings brochure now
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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