2011-12 ISA Deadline

ISA deadline

The 5th April 2011-12 ISA deadline is now past! 

 

It is now too late to utilize your 2011/12 ISA allowance. However you can use your 2014/15 ISA allowance - the deadline for this allowance is 5th April 2015.

 

With the new ISA season well and truly upon us, now is the time to consider all of the options available. We therefore give you a detailed round-up of our selection of the best that the market has to offer, for both Cash ISAs and Investment ISAs.

 

See below for the latest ISA deals, whether you're looking for instant access or fixed rate Cash ISAs, income or growth Investment ISAs, or fund ISAs. Apply today and start making the most of your 2014/15 ISA allowance as soon as possible. You can also transfer previous years' ISAs to make them work harder for you:

Cash ISA Selection
ProviderPlan NameDeposit TakerISA OptionTermMaximum Potential ReturnMore Info
Retirement Deposit PlanInvestec Bank plcyes6 years

3.75%

per year, plus 22.5% at end of term

More Info >
  • 3.75% annual payments from capital
  • 77.5% remainder of initial deposit paid at end of term
  • Potential 22.5% growth return at end of term, if the Index is higher than 90% of Initial Value
  • Capital protected
  • Low minimum - £3,000
  • Short/medium alternative to fixed rates
  • Available for Cash ISA and  ISA Transfers 
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Only available for new ISA investments or ISA transfers, not direct investments
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital
6 Year Defensive Deposit PlanInvestec Bank plcyes6 years

24%

at end of term

More Info >
  • 24% fixed return if the Index is higher than 95% of its Initial Level
  • Capital protected
  • Low minimum - £3,000
  • Medium/longer term alternative to fixed rates
  • Available for Cash ISA,  ISA Transfers and non-ISA
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital
4 Year Deposit PlanInvestec Bank plcyes4 years

12%

at end of term

More Info >
  • 12% fixed return if the Index is higher
  • Capital protected
  • Low minimum - £3,000
  • Short/medium alternative to fixed rates
  • Available for Cash ISA, ISA Transfers and non-ISA
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital

Important Information: Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.


Instant Access Cash ISAs
ProviderAccountInterest RateTermApply
0.75%Easy AccessApply Now >
  • Earn 0.75% tax free/AER variable
  • Save from just £100
  • Interest calculated daily and paid in March
  • Online access only
  • Partial ISA transfers out not available - transfers out in full only
0.80%30 Days NoticeApply Now >
  • Manage your account online
  • Unlimited withdrawals subject to 30 days notice
  • Transfer from other cash ISA providers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • Minimum opening balance of £1,000
0.75%Instant AccessApply Now >
  • Instant access
  • 0.75% AER/Gross
  • Minimum deposit £1
  • Open and manage your account online or in branch
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be 16 or older

See the tables below for some of the leading funds available as stocks and shares ISA investments:


Fixed Rate Cash ISA Selection
ProviderAccountInterest RateTermApply

1.20%

per annum

3 YearMore Info >
  • Manage your account online
  • Withdraw cash early if you need to (subject to loss of interest)
  • Transfer from other cash ISA providers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • Minimum opening balance of £1,000
1.15%3 YearMore Info >
  • Apply and manage your account online
  • Withdraw cash early if you need to (subject to loss of interest)
  • Transfer from other cash ISA providers
  • Interest paid annually into ISA
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 16 or older
  • Minimum opening balance of £500

1.15%

per annum

2 YearMore Info >
  • Manage your account online
  • Withdraw cash early if you need to (subject to loss of interest)
  • Transfer from other cash ISA providers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • Minimum opening balance of £1,000

The government made changes to the annual ISA allowance so that it would increase annually inline with inflation, beginning from the 2011/2012 tax year. This means you can save even more in your stocks and shares ISA and cash ISA, protecting more of your savings from capital gains and income tax.

If you do not invest the maximum allowance for 2014/15 ISA allowance before the end of the tax year (5th April 2015), you will lose that allowance forever. Additionally, if you withdraw money from your ISAs but have already paid in the maximum allowance for that year, you cannot replace the funds which you have taken out.

Investment ISAs - Income
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential IncomeMore Info
FTSE Dual Option Contingent Income PlanNatixisyesUp to 6 years

7.00%

per annum

More Info >
  • Up to 7% per year based on the performance of the FTSE 100 Index
  • Income paid even if Index falls by 20%
  • Quarterly payments
  • Plan can mature early each quarter from year 2 onwards
  • Alternative option available returning a potential 5% per year if FTSE falls by 40%
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfers - 9 November 2016
  • Investment deadline for direct and ISA applications by cheque - 17 November 2016
  • Investment deadline for direct and ISA applications by bank transfer - 23 November 2016
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% from its starting level at the end of the investment term, in which case your initial investment will reduce by 1% for each 1% fall below its starting value
  • Minimum investment £5,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
FTSE 100 Kick-Out Income PlanInvestec Bank plcyes6 years

7.00%

per annum

More Info >
  • Up to 7% per year based on the performance of the FTSE 100 Index
  • Income paid even if Index falls by up to 25%
  • Potential early maturity from year 2 onwards
  • Quarterly payments
  • Available for ISA, ISA transfer and direct investment 
  • Investment deadline for ISA transfer applications - 2 December 2016
  • Investment deadline for direct and ISA applications - 16 December 2016
  • Capital is at risk if the FTSE 100 Index falls by more than 40% at maturity from its starting value, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
FTSE Contingent Income PlanCredit Suisse AGyesUp to
6 years

6.56%

per annum

More Info >
  • Up to 6.56% per year based on the performance of the FTSE 100 Index
  • Income paid even if Index falls by up to 25%
  • Quarterly payments
  • Plan can mature early each quarter from year 1 onwards
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfers - 30 November 2016
  • Investment deadline for direct and ISA applications by cheque - 8 December 2016
  • Investment deadline for direct and 2016/17 ISA applications by bank transfer - 14 December 2016
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% from its starting level at the end of the investment term, in which case your initial investment will reduce by 1% for each 1% fall below its starting value
  • Minimum investment £5,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.
Investment ISAs - Growth
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential ReturnMore Info
FTSE 100 Enhanced Kick Out PlanInvestec Bank plcyesUp to
6 years

10%

per annum

More Info >
  • 10% for each year (not compounded) provided the FTSE 100 finishes higher than its starting value (subject to averaging)
  • Alternative collateralised options also available returning a potential 9.2% / 8.1% 
  • Potential to mature early, from year 1 onwards
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline ISA transfer applications - 2 December 2016  
  • Investment deadline for direct and ISA applications - 16 December 2016 
  • Capital is at risk if the FTSE 100 Index falls by more than 50% during the term and finishes lower than its starting value, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
FTSE 100 Defensive Growth PlanInvestec Bank plcyes6 years

34.0%

after 6 years

More Info >
  • 34% after 6 years provided the FTSE 100 finishes above 50% of its starting value
  • Available for ISA, and ISA transfer
  • Investment deadline ISA transfer applications - 2 December 2016
  • Investment deadline for ISA applications - 16 December 2016
  • Capital is at risk if the FTSE 100 Index has fallen by more than 50% at maturity from its starting value, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • Only available for new ISA investments or ISA transfers, not direct investments
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
FTSE 100 Step Down Kick-Out PlanInvestec Bank plcyesUp to
6 years

8.25%

per annum

More Info >
  • 8.25% for each year (not compounded) provided the FTSE 100 finishes above kick out level
  • Kick out level reduces from 100% to to 80% over the term
  • Potential to mature early, from year 2 onwards
  • Alternative collateralised option available paying 7.4% with 40% capital at risk barrier but additonal protection from 5 UK financial institutions
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline ISA transfer applications - 2 December 2016
  • Investment deadline for direct and ISA applications - 16 December 2016
  • Capital is at risk if the FTSE 100 Index falls by more than 50% during the term and finishes lower than its starting value, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying Index or commodity. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

CASH ISAs

 

Instant access

The pick of the instant access Cash ISAs is the ING Direct Cash ISA, paying 3.00% AER. This rate is guaranteed for a minimum of 12 months and the interest is paid monthly. The account can be opened with a minimum of £1 and you are able to transfer previous years’ Cash ISAs into it. Just remember that after the 12 months, the rate will revert to their standard variable rate (currently 1%) so you will need to consider your options again at this time.

 

Fixed Rate

In the shorter term, the RBS 1 Year Fixed Rate Cash ISA is offering up to 3.35% provided you transfer in an existing Cash ISA (not including transfers from RBS or NatWest). The minimum deposit is £1,000 and you can apply online.

The medium to longer term fixed rate market is rather uncompetitive at present with little difference available in rates between 3 and 5 years. A rate of 4.20% is market-leading across both of these terms from NatWest provided you transfer an existing Cash ISA, or alternatively through Halifax’s 5 year Fixed Rate Cash ISA, with a minimum deposit of £500.

 

CASH ISA ALTERNATIVES

The current lack of competitive fixed rate Cash ISAs has greatly increased the interest in alternatives. Structured Deposits offer a combination of capital protection with the opportunity to receive a higher return (normally linked to the FTSE 100 Index). Since these are deposits, they are also eligible for the Financial Services Compensation Scheme.

 

Income

For those looking for income, the Income Deposit Plan from Meteor offers 7.25% for each year the FTSE 100 remains between 4,250 and 7,000. The capital protection is provided by the Royal Bank of Scotland and transfers are accepted. Since this is held within a Cash ISA the income is tax free and compared to current longer term fixed rates of 4.20%, this is a considerable difference in potential upside.

 

Growth

For those looking for growth from their investment, there is a wide choice available. In the shorter term, Investec’s 3 Year Deposit Plan offers a 19% return provided the FTSE finishes higher than its starting level (subject to averaging), which equates to a compound return of nearly 6% a year.

In the medium to longer term, higher rates are also available. Investec’s FTSE 100 Kick Out Deposit Plan offers a return of 6.25% times the number of years the plan has been in place. The plan has a five year term but will mature early or ‘kick out’ from year 2 onwards provided the FTSE finishes higher than its starting value. As an alternative, Morgan Stanley’s Accumulator Deposit Plan locks in 6% for each year the FTSE ends higher than its starting value and also has a memory feature which allows you to catch up on any years which did not provide a return. The capital protection here is provided by LloydsTSB.

Finally, Legal & General’s Inflation Protected Deposit Bond offers a minimum return of 16% or, if higher, any increase in the Retail Price Index over the term. This plan is for those who want to hedge their savings against the effects of inflation and who are worried not so much about the next 12 months, but what could happen over the next 5 years.

All of the above plans will accept Cash ISA transfers. Click here to find out more about Fixed Rate Cash ISA Alternatives »

 

INVESTMENT ISAs

 

Income

The Bonus Income Plan from Investec is a real stand-out. The plan pays a fixed income of 7.00% each year with an additional 0.50% bonus for each year the FTSE 100 is higher than its starting value. Capital is at risk if the FTSE drops by more than 50% during the plan, and the plan also has a monthly income option.

High yields are also available from investment funds but unlike the Investec plan, these returns are not fixed. Invesco Perpetual’s Monthly Income Plus fund has a current distribution yield of 7.19%* and pays income each month whilst Newton’s Higher Income fund has a historical yield of 7.02%* and pays quarterly. For a managed fund option, Invesco Perpetual’s Distribution fund has a distribution yield of 6.88%* and pays income monthly.

All of these funds have a 0.00% initial charge when invested through the Fair Investment Fund Supermarket and you can also transfer your existing funds at no charge.

Click here to look at more Income Investment ISA options »

 

Growth

For those Investment ISAs offering a defined return, the most popular type of investment in the growth sector is the Kick Out plan which offers the opportunity to mature early, normally each year. The highest rate available is through Investec’s Enhanced Kick Out Plan which will return 13.5% per year (not compounded) should the FTSE finish higher at the end of the year than its starting value. Therefore, the FTSE only has to go up a little in order for the plan to mature early. Capital is at risk if the FTSE falls by more than 50% during the 5 year investment term.

For those looking for a defensive option, Morgan Stanley’s FTSE Booster Plan offers the potential for a fixed return of 60% (equivalent to approximately 8.25% per year compound) provided the FTSE does not fall by more than 20%. Capital is at risk but the plan also contains a unique booster feature which means a positive return can be achieved even if the FTSE falls by up to 50%.

For those looking for investment fund growth options, the Fair Investment Fund Supermarket has over 1,500 funds from more than 90 investment managers. Current highlights include M&G’s Recovery fund which focuses on UK equities and is AAA rated by Morningstar, S&P and OBSR**. Our global equity pick is Neptune’s Global Equity fund which has outperformed its benchmark by over 100% since launch and is also AAA rated by OBSR**.

We also provide you with our popular choices and our fund selections across a number of other sectors including Emerging Market funds, Ethical funds, Managed funds, Bond funds and Absolute Return. Our current selection includes Aberdeen’s Emerging Market fund which is top quartile over 1, 3 and 5 years and is AAA rated by OBSR*. Please visit our Growth Fund Selection for more details.

All of the funds detailed above have a 0.00% initial charge when invested through the Fair Investment Fund Supermarket and you can also transfer your existing holdings at no charge.

Click here to look at more Growth Investment ISA options »

 

Important Reminder - why do an ISA?

The main reason for using an ISA concerns the tax advantages, since no tax is payable on the income you receive or on any capital gains that you make and there is no need to declare any ISA income or capital gains on your tax return. ISAs therefore provide tax-efficient investment growth, the value of which is compounded over time.

For help and guidance at this important time of year, please see our Top 10 Tips for ISA season. Please also note that with all of these options, our experienced Investment Customer Services team is always on hand to answer any questions, either by email (helpdesk@fairinvestment.co.uk) or telephone on 0845 308 2525.

* data correct as at 31/01/2012
** data correct as at 31/12/2011

No news, feature article or comment should be seen as a personal recommendation to invest. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment. If you are at all unsure of the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested.

Investments in Stocks & Shares ISAs do not contain the same degree of capital security as investments in deposits. Stocks and shares ISAs are designed as medium to long term investments of, for example, five years or more. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.