Don't risk 'crash and burn' when you can choose 'cash and learn' for your last minute ISA

02 April 2014
 

Bestinvest’s Managing Director Jason Hollands comments:

“The clock is ticking for people contemplating a contribution to an ISA before the end of tax year deadline at 12pm on 5th April. With ever more people falling into the higher rate tax band, ISAs are valuable tax-efficient annual allowances but ones which are only available on a “use it or lose it” basis each year, so they should be utilised if you are able to.

“However each year a number of investors fall into the trap of making a hasty decision on where their ISA will be invested – swayed by the white noises of tips – or are turned off by short-term events hanging over the markets. A rushed decision on which asset class, market or fund to invest in could backfire. It always makes sense to take long-term investments decisions having first calmly reviewed your objectives and strategy.

“If you feel you need more time but don’t want to lose your allowance then open your Stocks & Shares ISA with an initial holding in cash. Having secured your allowance, you can then invest it later when you are comfortable with your investment choices. Investing in a series of lump sums will also help reduce the risk of getting your market timing wrong.

“The simplest and lowest cost way to do this at the eleventh hour is online. We estimate that it takes three minutes to open an ISA online through our website, and you will receive instant feedback on whether your application has been accepted if you apply in this way.”

Six practical tips for last-minute investing in an ISA:

  • 1. It is vital that you have cleared funds in your bank account as you must purchase an ISA with a debit card and cannot use a credit card.
  • 2. The payment must made with a debit card in the name of the applicant (or parent/guardian in the case of a Junior ISA) as this will form part of the identification checking process required under anti-money laundering regulations. A friend or business cannot open an ISA on your behalf.
  • 3. Some bank fraud detection teams may block large transfers, so it can makes sense to notify your bank ahead of the transfer.
  • 4. A National Insurance number is required to open an ISA. If you don’t know your number, this can usually be found on your pay-slip.
  • 5. While you can invest just minutes before midnight – try not to leave it this late, lest internet speeds foil your plans.
  • 6. Consider setting up a direct debit or investing early in the new tax year – to avoid putting yourself under pressure again.

 

Should investors have any questions, Bestinvest’s phone lines will be open between 7.45am – 12am on Friday 4th April and 9.30am - 12am on Saturday 5th April.

 

- Ends -

 

About Bestinvest:

 

Founded in 1986, Bestinvest has grown to become a leading private client investment adviser, looking after £5 billion of assets. We offer a range of investment services from the Online Investment Service for self-directed investors to Investment Advisory and Investment Management services for clients who do not have the time or inclination to manage their own investments.

All of our services are underpinned by rigorous research aimed at identifying those fund managers we believe will deliver long-term superior performance. We also have a team of expert financial planners with nationwide coverage to help clients with their pensions, retirement or Inheritance Tax planning. At Bestinvest, we pride ourselves on offering the highest levels of professionalism and expertise with transparent, competitive prices. We are pleased that our greatest source of new business is from personal referrals from existing clients.

Bestinvest has won numerous awards including Stockbroker of the Year, Low-Cost Sipp Provider of the Year and Self-Select ISA Provider of the Year at The Investors Chronicle and Financial Times Investment Awards 2013. Bestinvest also won UK Wealth Manager of the Year 2013 and Best Wealth Manager for Investments at The Investors Chronicle and the Financial Times Wealth Management Awards 2013.

Headquartered in Mayfair, London, Bestinvest employs more than 200 staff and has an extensive network of regional offices. For further information, please visit: www.bestinvest.co.uk

About Tilney

Tilney is a leading investment and financial planning firm that builds on a heritage of more than 150 years. The Tilney Group operates under the Tilney brand for Investment Management and Financial Planning and Bestinvest for execution-only investing. We look after more than £22 billion of assets on our clients’ behalf and pride ourselves on offering the very highest levels of professional client service with transparent, competitive pricing across our entire range of solutions.

We offer a range of services for clients whether they would like to have their investments managed by us, require the support of a highly qualified adviser, prefer to make their own investment decisions or want to take more than one approach. We also have a nationwide team of expert financial planners to help clients with all aspects of financial planning, including retirement planning.

We have won numerous awards including Best Fund Platform and Best SIPP Provider at the 2017 City of London Wealth Management Awards; Investment Award – Cautious category in the Private Asset Management Awards; and Stockbroker of the Year, Execution-only Stockbroker of the Year and Self-select ISA Provider of the Year 2015, as voted by readers of the Financial Times and Investors Chronicle. We are pleased that our greatest source of new business is personal referrals from existing clients.

Headquartered in Mayfair, London, Tilney Group employs over 1,000 staff across our network of offices, giving us full UK coverage, and we combine our award-winning research and expertise to provide a personalised service to clients whatever their investment needs.