Why delaying your investment could cost you

Whether you’re building a nest egg or saving for a specific aim, starting early with an ISA offers some key advantages. In this guide, we explain why you should consider maximising this tax-efficient savings opportunity in 2025.

Investing in an ISA earlier in the tax year gives your money a vital head start. The longer your investments stay in the account, the more they can benefit from tax-efficient compound growth. This principle becomes especially powerful when you consider that compound returns build on each other – each year’s growth forms the foundation for the following year’s potential gains.

Savers and investors have less than three months to use the £20,000 they can put into their tax-efficient Individual Savings Account (ISA) before the end of the financial year on 5 April. The current tax year started on 6 April 2021 and ends on 5 April 2022.

ISAs enable you to minimise the amount of tax you pay on your hard-earned cash. Some ISAs give you instant access to your money and can be used to plan your finances for the short term. On the other hand, if you have longer-term savings goals, you can invest in an ISA for your future.