How to make the most of your Isa - Telegraph.co.uk

Forget the fee

Initial charges when you buy a unit trust can be up to 6pc, but use an online platform and often the charge is waived. Platforms such as Fidelity Fundsnetwork, TQ Invest or Hargreaves Lansdown are discount brokers, meaning they absorb the initial charge on many of the funds you can buy through their websites.

Park your cash

If you've left your Isa investment until the last minute, you're less likely to have thought through where you would like to invest your money. Why not buy yourself a bit of extra thinking time, while still taking advantage of your Isa allowance?

When making your equity Isa application, instead of nominating a fund simply tick the "cash park" option, then return to your account when you're ready to make an investment decision.

Little and often

Few people have a spare £10,200 in their current account – but many of us could easily save £50 a month. The minimum monthly deposit for most funds is just £50, and drip-feeding an investment smooths market fluctuations.

If you had put a lump sum of £7,200 in the average China fund at the start of 2008, your fund would now be worth around £8,500. On the other hand, if you had drip-fed £200 a month over the same period (a total outlay of £7,200) into the same fund it would be worth more than £10,000, according to Morningstar.

Too cautious for investment? Many cash Isas can be opened with a deposit of just £1. After you've opened the account, set up a direct debit to pay £10 into your cash regular saver Isa every month.

Loyalty doesn't pay

Your Isa assets will grow only if you continue to earn competitive interest on the entire pot each year – not just this year's Isa allowance. Most cash Isas accept transfers in.

If you have dutifully accumulated Isas in previous years, first check that the Isa you want accepts transfers in, then ask the provider for a transfer form. You will need to provide the account details of all your existing Isas and return it to your new provider.

Look for an Isa provider that pays interest from the day they receive your completed form – Nationwide, Halifax and Lloyds do this. Otherwise, in accordance with Financial Services Authority guidelines, providers can take up to 15 working days to process your application before you start to earn any interest.