Overview
- InvestEngine’s modelling shows that making the annual maximum ISA contribution at the start of each tax year since 1999 could have grown to about £1,277,963 versus £1,195,127 for end‑of‑year investing, a gap of £82,836.
- The same analysis using £1,000 a year found about £129,135 for start‑of‑year investing compared with £122,536 for end‑of‑year deposits, a difference of £6,599.
- The firm says early contributions work because money sits in the market for longer, so gains can earn further gains through compounding inside the tax wrapper.
- Customer flow data from InvestEngine shows 10% of its users waited until the last week of the tax year to invest a combined £33 million, while the first day of the new year on 6 April drew £9 million.
- Coverage carries standard warnings that returns can fall as well as rise and also notes InvestEngine is offering bonuses for ISA and SIPP transfers subject to terms.