But as Investors Chronicle reader Andrew Bebbington has kindly pointed out: "Talk of the 'Isa season' can create the impression that this is the 'right' time to invest in Isas, when in fact investors should be encouraged to invest early in the tax year. If Isas are opened early it also gives the option to spread the investments over a 12-month period."
While I agree with these sentiments entirely, in practice, however, the vast majority of investors only think about Isa decisions in March, once they know how much money they have to play with after the expensive Christmas period and the January deadline for tax returns. In this sense, we cannot really avoid the 'Isa season'.
Nevertheless, you can still phase your investments if you invest at the end of the tax year via a self-select Isa. Self-select Isas have a cash facility via which you can drip-feed Isa monies into the stock markets after you have subscribed the full amount. This enables you to use your Isa allowance but not plunge your money into the markets immediately - for instance, if you feel nervous about a potential euro meltdown. The downside is that you won't get a good rate on your cash while you are holding it in this facility so the value of your funds will be eroded by inflation.
Even if you don't want to go headlong into the stock market, make sure that you use your cash Isa allowance for 2011-12 of £5,340. You can always convert it to a stocks-and-shares Isa at a later date. In the meantime, you can benefit from the rates war that is hotting up among cash Isa providers.
For example, Halifax has this week introduced a new 3.00 per cent online Isa, a 2.75 per cent variable rate Isa, and fixed rates that stretch up to a market-leading 4.50 per cent for the five-year Isa saver fixed. You can search for the best cash Isa rates at www.moneyfacts.co.uk
However, perhaps for the next tax year you should think about funding your Isa on a monthly basis. The Isa allowance for 2012/13 is £ £11,280, which equates to a monthly subscription of £940.
