New ISA season new investment opportunities Go compare with our comparison table

New ISA season new investment opportunities

13 April 2012 / by James Caldwell

For Savers and Investors the new 2012/13 tax year which started on 6th April 2012 brings with it new ISA allowance thresholds which have been set by HM Treasury.

For Cash ISA savers £5,640 can be sheltered from the tax man while for investors who want to invest in stocks and shares the new ISA limit has been set at £11,280.

Cash ISAs – Top Picks for Income

In the current low interest rate environment maximising income is a priority for many.

Best instant access cash isa deals include Cheshire Building Society who are offering 3.50% pa with a minimum opening balance of £1,000. If you are unhappy with the current return from your Cash ISA you can transfer it. For existing customers Natwest are currently offering 3.50% pa for Cash ISA transfers of £30,000 or more.

Best fixed rate cash ISA deals include include Cheshire Building Society who are offering 4% pa for a 18 month term. Other options include Natwest who offer preferential terms for people looking to transfer a Cash ISA from another provider paying up to 4.20% pa for a 3 year fixed term. One of the best 5 year fixed rate ISA deals currently is offered by Halifax who are paying 4.50% pa.

Our top picks for Cash ISA alternative plans include the Fair Investment Income Deposit Plan. Capital protection is provided by the Royal Bank of Scotland and the plan will pay an annual income of 7.25% for each year the FTSE remains between 4,500 and 7,250.

Other alternative Cash ISA options for growth seekers include the Investec FTSE 100 3 Year deposit plan which has a target return which is paid as long as the FTSE 100 is no lower than its level at the start of the plan.

Investment ISAs – Top Picks for Income

If you are happy putting some of your capital at risk the new 2012/13 ISA allowance allows you to invest up to £11,280 in a stocks and shares ISA.

Our top picks include the Morgan Stanley FTSE Income Plan which pays 7.70% pa or fixed quarterly payments of 1.925% for 5 years. Capital is at risk if the FTSE 100 Index has fallen by more than 50% during the investment term and the final index level is lower than the initial level. You might also want to consider the Investec Bonus Income Plan which pays 7% pa or 0.58% monthly regardless of the performance of the FTSE 100. Capital will be at risk if the Index has fallen by more than 50% during the investment term.

For investment funds investors might want to consider the popular Invesco Perpetual Monthly Income Plus fund which has a distribution yield of 7.01% alternatively for investors who wish to diversify their income stream to emerging markets the Threadneedle Emerging Market Bond fund pays a quarterly income yield which is currently 5.50%. Please note that for funds income yields can fluctuate and are not guaranteed. Please visit our website for further income fund options from our Select Income Funds Range as well as our Popular Fund choices.

Investment ISAs – Top Picks for Growth

The investment plan top pick for growth is the Investec Enhanced Kick Out Plan. If the value of the FTSE 100 at the end of the year is higher than its starting value (subject to averaging), you will receive your initial capital plus a market leading 13% return for each year the investment has been in place. This plan also includes conditional capital protection which means that your initial capital will be returned in full unless the FTSE falls by more than 50% during the five year investment term.


The Fair Investment Fund Supermarket has over 1,500 funds from more than 90 investment managers, so finding our investment fund top picks amongst the vast choice available within the growth sector is a tough challenge.

Our top pick in the UK Equity sector is the M&G Recovery fund which is AAA rated by Morningstar, S&P and OBSR and has had top quartile cumulative performance over the last one, three and five years**. Our global equity top pick is Neptune’s Global Equity fund which has outperformed its benchmark by over 100% since launch and is also AAA rated by OBSR**. For those looking for opportunities in less developed markets our Emerging Market fund top pick is Aberdeen’s Emerging Market fund which is top quartile over 1, 3 and 5 years and is AAA rated by OBSR*.

All of the funds detailed above have a 0% initial charge when invested through the Fair Investment Fund Supermarket and you can transfer your existing holdings at no charge. We also provide you with our Popular Fund choices and our Select Range of funds across a number of other sectors so visit our website for more details.

Click here to compare more Growth Investment ISA options »

 

 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. 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.

 

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.