Isa savers stayed up late transferring money as the new tax year began, with some using up their new allowance within minutes of the start of 2024-25.
Bestinvest's final Isa subscription for the 2023-24 tax year was received at 11.55pm on 5 April, just minutes before the end of the tax year.
The first new Isa subscriptions for the 2024-25 tax year took place three minutes after midnight on 6 April.
And the first customer to maximize his Isa allowance of £20,000 in the new tax year did so 52 minutes after midnight, Bestinvest said.
The platform estimates that if an Isa investor systematically invested their entire allowance on the first day of their tax year over 25 years of investing in global stocks, they could potentially be more than £67,000 richer than an investor who invests on the last day of each year.
Calculations include certain assumptions, including a one-time investment in the MSCI AC World Index with dividends reinvested until April 7, 2024.
Over time, savers can benefit from the “compounding” effect, or growth in their profits.
However, the value of your investments can fall as well as rise, so you should keep the risks in mind.
Jason Hollands, managing director at Bestinvest, said: “As the saying goes, ‘the early bird catches the worm’, so those who are in a position to use their new Isa now rather than waiting until the end of the tax year should do so. This should be strongly considered. .”
Mr Hollands continued: “Of course, many people may not be able to make the most of their Isa allowance with a lump sum at the start of the new year, but it still makes sense to start early and one option to consider is timing it. And by investing regularly, you can completely take emotions out of the equation.
“Regular investing is a great discipline to help you navigate the ups and downs and reduce market timing risk. This is because you end up using 'pound cost averaging', which is the average entry price over the year that reflects days when the market falls. When it was down, others were up.”
Investment services provider Fidelity International said the first trade of the new tax year took place at five minutes past midnight on April 6. Meanwhile, another customer maximized his Isa allowance by £20,000 at 20 minutes past midnight.
Ed Monk, deputy director at Fidelity International, said: “The annual Isa allowance will remain at £20,000, but savers will be able to pay into multiple Isas of the same type from the start of the 2024/25 tax year and add more. Building Wealth You have the flexibility to choose your method.
“This will make it easier for you to hold Isas in multiple places at the same time in the same tax year and choose the Isa that best suits your goals.”