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Avoid the last-minute Stocks and Shares ISA rush

The end of tax year is normally busy as people rush to secure their Stocks and Shares ISA allowance. This year is unlikely to be any different.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Stocks and Shares ISAs are still a popular way for people to invest for their future.

Nearly 2.7 million people subscribed over £24 billion to a Stocks and Shares ISA in the 2019/20 tax year. That’s the second highest amount put into Stocks and Shares ISA in one tax year.

These figures are pre-pandemic, so the saving and investing habits of UK adults might have changed. But given the overall amounts paid into Stocks and Shares ISAs has almost doubled in value from ten years ago, many of the principles are still likely to stand.

This article isn’t personal advice. Tax rules can change, and their benefits depend on your personal circumstances. If you’re not sure if an ISA or investment is right for you, ask for financial advice.

Why have Stocks and Shares ISAs been popular?

It’s been a tough time for savers.

For example, the average Cash ISA rate has been below 1% since 2012. And while it’s recovered from 2021 lows of 0.13%, it’s still hard to get a good rate on your Cash ISA savings. That’s before you even consider the cost of everyday items surging, thanks to inflation.

So people have had little choice in recent years but to switch their money on and start hunting for a better return on their money. This is where investing comes in providing you’re happy to accept the additional risks compared to cash.

Investing can give you the potential to grow your money by more than sitting in cash. More importantly, it can help your money keep up with or beat inflation – especially over the long term.

Over a 112 year period, up to December 2020, data shows the stock market has beaten cash in 91% of ten-year periods. Though there’s no guarantee this will continue and unlike the security offered by cash, investments rise and fall in value, you could get back less than you put in.

The key for any new and existing investors is to always focus on your long-term goals and make sure the rest of your finances are in a solid place before you get started. Control your debt by clearing any short-term, expensive debts. Have a healthy savings pot ready for emergencies. And only invest money you’re not planning to spend in the next five years.

FIND OUT MORE ABOUT STOCKS AND SHARES ISAS

The last-minute rush to secure ISA allowances

The tax year ends at 11:59pm every year on 5 April. Any of your ISA allowances for that tax year you don’t use before then will be lost forever.

So it’s unsurprising there can be a rush when the deadline looms as people make the most of their allowances.

And it’s not just in the final month.

On the final day of the last tax year, we saw thousands of people rushing to secure their allowances. In fact an HL Stocks and Shares ISA was opened or topped up every four seconds.

It didn’t slow down much either as the day went on. In the final hour before the midnight cut off, an HL Stocks and Shares ISA was opened or topped up every six seconds.

Avoid the rush. Secure your Stocks and Shares ISA today

If you’re planning on using your ISA allowance anyway, why not save yourself hassle and avoid the rush by doing it today. You can also top up now, using cash, and decide where to invest later.

Once you’ve decided it’s right for you it’s simple to open or top up an HL Stocks and Shares ISA. Most of our clients choose to do it online. But if you’d prefer, you can also secure your ISA by calling 0117 980 9950.

If you’re happy making your own investment decisions and want to apply for your ISA it should take no more than five minutes.

Before you open an HL ISA, read and understand our Terms and Conditions (including Tariff of Charges) and Key Features. All investments can fall as well as rise in value so you could get back less than you put in.

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    Important notes

    This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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