Early bird ISA vs last-minute ISA investing – which is best for your portfolio?

Does the early bird ISA catch the worm? We've looked at what the benefits of acting early can be in the new 2024/25 tax year.

Early bird ISA represented by a m doing parkour at dawn
(Image credit: Getty Images)

The new tax year brings a fresh £20,000 allowance that investors can put into an ISA over the next 12 months. But rather than waiting, there are benefits to being an early bird ISA investor and starting now.

Analysis shows that early bird ISA investors who make use of their ISA allowance from the start of the tax year tend to do better than those who invest at the last minute.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Swipe to scroll horizontally
Tax yearTotal contributionsEarly bird ISA valueLast minute ISA valueDifference
1999/2000£125,000£401,643£382,385£19,259
2008/2009£80,000 £192,418£178,833£13,585
Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.