Income ISAs

Compare our best 2016 Income ISA selections...

Investing in an ISA allows you to benefit from tax-efficient returns. If you are an income seeker, then it makes sense to make the most of your annual ISA allowance. See below for our selection of income ISAs:

Fixed Income - ISA season best seller
ProviderPlan NameCounterpartyISA OptionTermAnnual IncomeMore Info
FTSE 100 Enhanced Income PlanInvestec Bank plcyes6 years

5.04%

fixed income

More Info >
TAX FREE FIXED INCOME: 6 year investment plan paying a fixed monthly income of 0.42% (equivalent to 5.04% annually). Available as a Stocks & Shares ISA, non-ISA investment and ISA transfer.
Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. 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.
Investing for Income
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential IncomeMore Info
FTSE Contingent Income PlanNatixisyesUp to 10 years

8.25%

per annum

More Info >
Maximum 10 year structured investment plan paying a potential quarterly income of 2.0625% (equivalent to 8.25% annually) and the opportunity to mature early from year 2 onwards. Also available as a Stocks & Shares ISA investment and ISA transfer.
FTSE 100 Kick-Out Income PlanInvestec Bank plcyes6 years

7.00%

per annum

More Info >
6 year investment plan paying a potential quarterly income of 1.75% (equivalent to 7% annually). Available as a Stocks & Shares ISA, non-ISA investment and ISA transfer.
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.
Income Investment ISAs
ProviderAccountISA TransfersProtection schemeFund choiceInvest From:More info
yes

FSCS

Managed Potfolio

Min. £500 single

(+ £100pm for ISAs below £5,000)

More Info >
Why we like it: Get an intelligent stocks & shares ISA portfolio, fully managed by our expert team. No tie-ins, no set-up fees, no exit charges. Easy, online set up in minutes. Start with as little as £500 (plus £100 per month for ISAs below £5,000). One simple annual portfolio management fee – 0.3% to 0.95% depending on how much you invest, incl VAT. Regular rebalancing – at no extra cost – plus, live chat, amazing customer support and brilliant investor tools and guides. Regulated by the FCA and protected by the FSCS. Capital at risk.
yes

FSCS

2,000+ funds

£50 per month

or just £5 single

More Info >
Why we like it: Barclays Stockbrokers has been voted ‘Self Select ISA Provider of the Year’ at the ADVFN International Financial Awards 2016. Choose from over 2,000 funds, shares, ETFs, investment trusts, gilts, bonds and more. Now with ISA flexibility, withdraw and replace cash from a flexible ISA during the same tax year without it counting towards your annual ISA allowance.
yes

FSCS

1,500+ funds

£50 per month

or £500 single

More Info >
Why we like it: Invest through an award winning FTSE company, with extensive research and analysis and competitive charges. Choose from a range of investments including shares, funds, gilts, bonds, investment trusts and ETFs.


Important information: Investment ISAs are tax-efficient wrappers for long term investments. Capital’s at risk. Charges may apply.  Tax rules may change in the future and whether particular tax rules benefit you, will depend on your individual circumstances. ISA transfer charges may apply, please check with your provider.

 

What is an income ISA?


An income ISA is a way of using your ISA allowance that aims to provide you with a regular tax-efficient income payment on your investment or savings. Income may be paid on a quarterly, semi-annual or annual basis, so you can choose an option to suit your savings goals. Your ISA allowance for 2016/17 is £15,240 per person. You are permitted to invest all or part of this amount in an investment ISA, or part of this amount in a cash ISA and the remainder in stocks and shares.

 

What types of income ISA are available? 


There is a wide range of income ISAs available. You can select income funds covering all major geographical regions of the world. You can choose income funds with different investment risk profiles and growth objectives, including income equity funds, bond funds, property funds, specialist funds, and cash funds Income ISAs offer you the flexibility to make the most of your ISA allowance in a way that suits you. You can choose from income funds that invest in equities or funds that invest in corporate bonds. If you're looking to earn an income from your investment then there is a wide range of income fund ISAs that can help you to reach your investment goals. Another option for those who are seeking income is a structured deposit plan. These are plans with a defined term, typically 3 to 6 years, which offer a rate of return that’s defined at the outset. The plans are usually linked to stock market performance.


 

A income ISA might suit you if:

  • You want to use your ISA allowance to maximise your potential for income from your investments, especially at this time of low interest rates. The money you invest in an income ISA can offer the potential for tangible tax savings. 
  • You want to hold shares and increase your ISA amount over the long term - capital gains are 100% tax-free when held in an ISA.
  • You're looking to invest for the medium to long term - investment-based ISA accounts generally perform better over time than cash-based accounts.
  • You're saving with your retirement in mind. Many people use their yearly ISA allowance to invest in income-yielding plans - the result of which can generate a tax-free income during retirement. In fact, recent data shows that savers are now putting more money into ISAs than into pension schemes.
  • You want to combine a straightforward, tax-free cash savings account with the benefit of regular income payments.

 

An income ISA might not suit you if:

  • You're only saving for a short-term goal. Because the income on your ISA pays out at regular intervals - for example, once a year - you may miss out on the benefits of this if you withdraw earlier. If you do decide to use an income ISA for a short-term savings goal, make sure you choose one that pays out income at more frequent intervals, such as once every quarter.
  • Your first priority is to establish an emergency fund that you can easily access if something unexpected occurs. In this case, an instant access cash ISA might be more suited to your requirements.

To view more options for stocks and shares fund ISAs see the Fair Investment Company Select 100

 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.