"Having a short-term rainy-day fund is really essential to building financial security," he said.
“Once this is done then the long-term wealth growth can begin in earnest. Over a long time horizon, the potential benefits run into the hundreds of thousands of pounds.”
O'Connor said: “Having money in an Isa working hard for you while you get on with life is a wonderful feeling – it removes anxiety and stress and allows you time and space to choose how you want to use your money to fulfil life goals, whatever they may be.
"That feeling of financial security - in and of itself - is a worthy goal. The mental health benefits of a financial life not spent on the edge of survival are a great selling point for savings."
Interactive Investor said the tax year has not yet concluded and it was still expecting a late surge in contributions in the final two weeks of the tax year.
carmen.reichman@ft.com
