Fear of missing out
Spoilt for ChoiceIsa providers can be very convincing when trying to persuade savers to invest, but carefully consider your choices before taking the leap. This is particularly important if subscribing to an Isa means diverting savings from other investments.
Make sure you are maximising any workplace pension opportunities before opening an Isa. Certainly don’t jump the gun by opening an Isa without first considering whether it suits your individual goals. Weigh up the pros and cons, and be aware of the restrictions placed on some Isas. For example, you can incur penalties on Lifetime Isas by withdrawing money for anything except buying a property and retirement. Buying an Isa is only part of taking a responsible approach to your finances. It does not remove the need for budgeting, and should be considered as one component in your wider financial plan.