78% of UK investors plan to make use of their ISA allowance Go compare with our comparison table

78% of UK investors plan to make use of their ISA allowance

22 March 2013 / by Isabel Buxton

Recent research from the Association of Investment Companies suggests that 78% of investors plan to make use of their ISA allowance this year. 40% plan to use only the shares element , representing a 1% rise since last year, while just over a quarter plan to use both their cash ISA and investment ISA allowance, again representing a 1% increase on the previous year.

While the figures for investment ISAs are looking quite healthy, the number of investors using only cash ISAs has been steadily decreasing over the last few years, a change which is thought to be due to the current low levels of interest available on savings accounts. Only 12% plan to use their cash allowance alone, representing a drop from 14% last year and 18% in 2011.

What is an investment ISA?

Unlike a cash ISA - which is a straightforward tax-free savings account - a stocks and shares ISA allows you to invest money up to a certain amount without paying tax. This runs from 6th April each year, and for 2012/13 the full individual ISA allowance has been set by at £11,280. From 6th April 2013, this allowance will increase to £11,520 - a 2.1% rise on the previous year.

A stocks and shares ISA allows you invest your tax-free allowance while only paying 10% tax on any investment income you make. This can add up to a substantial saving when you consider that, on dividends paid on a non-ISA investment, an additional rate taxpayer would have to part with 42.5% in tax.

Why use your ISA allowance?

Whether you choose to use your cash ISA allowance, investment ISA allowance, or both, it’s a good idea to stash away as much as you can in order to take advantage of the tax-efficient benefits on offer. Use the tables below to compare some of the latest ISA deals.
 

No news, feature or comment should be seen as a personal recommendation to invest. If you are in any doubt as to the suitability of a particular investment you should seek independent financial advice.

© Fair Investment Company Ltd

Best 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
FTSE 100 Defined Income PlanInvestec Bank plcyes6 years

6.00%

per annum

More Info >
  • Up to 6% per year based on the performance of the FTSE 100 Index
  • Income paid even if Index falls by up to 25%
  • Missed payments added to future payment next time quartery Index level above 75%
  • 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 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 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.