Investing
Every little helps: Up ISA saving by £5 a month to reap rewards
ISA savers could significantly boost their pots by increasing monthly payments by just £5, research has revealed.
An extra fiver per month – or £1.25 a week – could add £727.38 over ten years to an ISA savings pot, while an extra £10 per month could add over £2,000 to an ISA over 15 years, according to analysis by Fidelity.
Saving into an ISA through a monthly savings plan (MSP) means savers can build their pot over the long term, without stumping up large lump sum contributions all at once.
However, as the end of the tax year (5 April) approaches, Fidelity said many ISA savers who save monthly simply roll their direct debit payments into the following year, without thinking about the possible benefits of increasing their contributions.
The table below shows the benefits of adding £5, £10 or £20 extra a month to your ISA:
| Monthly payments | Extra in your savings pot over 10 years | Extra in your savings pot over 15 years | Extra in your savings pot over 20 years | Extra in your savings pot over 30 years |
| Increasing monthly savings plan by £5 per month | £727.38 | £1,220.44 | £1,813.40 | £3,409.05 |
| Increasing monthly savings plan by £10 per month | £1,454.76 | £2,440.89 | £3,626.81 | £6,818.11 |
| Increasing monthly savings plan by £20 per month | £2,909.52 | £4,881.78 | £7,253.63 | £13,636.22 |
“Every little helps when it comes to saving. There’s a misconception that savers need to have large amounts of spare money to make the most of their ISA allowance each year. But in fact, it’s often wiser to split your contributions over time,” said Mark Till, head of personal investing at Fidelity.
