This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy. Read more

Investment ISAs Explained

Investment ISAs explained - All you need to know...

What is an ISA?

There are two types of ISA, which are:

Cash ISAs »


Stocks & Shares ISAs »

See the tables below for leading investment ISA deals:

Investment ISAs
ProviderAccountISA TransfersProtection schemeFund choiceInvest From:More info
yes

FSCS

Managed, Tracker, Self-Select

£20 per month

or £100 single

More Info >
Why we like it: Legal & General has over 9.5 million customers in the UK, and £983.3 billion of assets under their management (as at 31st December 2017). Their Stocks & Shares ISA offers a wide range of investment options, whether you want ready-made funds, low cost index trackers, or the ability to pick your own. You can invest up to £20,000 this tax year, with a low minimum of £100 lump sum or £20 per month, and you can manage your account easily online. Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.
yes

FSCS

Managed Portfolio

Min. £500 single

(+ £100pm for ISAs below £5,000)

More Info >
Why we like it: Get an intelligent stocks & shares ISA portfolio - Choose a portfolio that's fully managed by our expert team or a fixed allocation portfolio. 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). Portfolio management fees of 0.45%-0.75% up to £100k. 0.25%-0.35% beyond £100k. There are also underlying investment charges, see our fees page. Plus, live chat, amazing customer support and brilliant investor tools and guides. Authorised and regulated by the FCA. Capital at risk.
yes

FSCS

Choice of Funds from Scottish Friendly

£10 per month

or £100 single

More Info >
Why we like it: Invest from only £10 a month, lump sums from just £100 or a combination of both using your tax-free Investment ISA allowance. You can stop, restart, raise or lower your payments or your investments and cash in whenever you want. Choice of investing in one easy choice fund ISA, or a selection of nine different fund ISA's. Your money will be invested in a policy within a Scottish Friendly ISA which will then invest in a choice of funds from Scottish Friendly including stock market and bond funds.


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.


yes

FSCS

2,500+ funds

£25 per month

or £100 single

More Info >
Why we like it: Choose your own funds or alternatively a ready made portfolio. Market-beating savings and discounts of up to 5.5%. No charge to buy and sell funds. Low, tiered annual charges for holding funds, with a maximum of just 0.45% per annum. Free fund updates and analysis from experienced research team. Invest with a financially secure, FTSE 100 company.    


yes

FSCS

Online Advised and Managed Account

£25 per month

or £250 lump sum

More Info >
Why we like it: The Munnypot Stocks & Shares ISA is provided in combination with automated online investment advice. Munnypot monitors the performance of your investment 24/7 in relation to your goals. If the performance of your investment deviates negatively from your goal, Munnypot will automatically notify you with advice on how you can get your goal back on track. The low-cost service ensures you keep more of your Munnypot investment returns.  You can choose to withdraw your money for free at any time. Set up your account online in just 15 minutes. The value of investments can go down as well as up, so you could get back less than you invest. Capital at risk.


yes

FSCS

With-Profits Fund

£30 per month

or £500 single

More Info >
Why we like it: You don’t have to make any tricky investment decisions; your money will be invested in Shepherds With Profits Fund, and the bonuses you could receive will depend on the future performance of the fund. To try to achieve higher returns for you, your money is invested in a variety of assets, the majority of which consist of stocks and shares, but also property, bonds and cash. While returns are not guaranteed in stocks and shares investments and the value can go down as well as up, Shepherds apply a process known as ‘smoothing’ that attempts to even out fluctuations in the value and aims to keep a consistent level of bonus payments.


Important information: Investment ISAs are tax-efficient wrappers for long term investments. Capital 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.
Investment ISAs
ProviderAccountISA TransfersProtection schemeFund choiceInvest From:More info
yes

FSCS

Managed, Tracker, Self-Select

£20 per month

or £100 single

More Info >
Why we like it: Legal & General has over 9.5 million customers in the UK, and £983.3 billion of assets under their management (as at 31st December 2017). Their Stocks & Shares ISA offers a wide range of investment options, whether you want ready-made funds, low cost index trackers, or the ability to pick your own. You can invest up to £20,000 this tax year, with a low minimum of £100 lump sum or £20 per month, and you can manage your account easily online. Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.
yes

FSCS

Managed Portfolio

Min. £500 single

(+ £100pm for ISAs below £5,000)

More Info >
Why we like it: Get an intelligent stocks & shares ISA portfolio - Choose a portfolio that's fully managed by our expert team or a fixed allocation portfolio. 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). Portfolio management fees of 0.45%-0.75% up to £100k. 0.25%-0.35% beyond £100k. There are also underlying investment charges, see our fees page. Plus, live chat, amazing customer support and brilliant investor tools and guides. Authorised and regulated by the FCA. Capital at risk.
yes

FSCS

Choice of Funds from Scottish Friendly

£10 per month

or £100 single

More Info >
Why we like it: Invest from only £10 a month, lump sums from just £100 or a combination of both using your tax-free Investment ISA allowance. You can stop, restart, raise or lower your payments or your investments and cash in whenever you want. Choice of investing in one easy choice fund ISA, or a selection of nine different fund ISA's. Your money will be invested in a policy within a Scottish Friendly ISA which will then invest in a choice of funds from Scottish Friendly including stock market and bond funds.

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.


yes

FSCS

2,500+ funds

£25 per month

or £100 single

More Info >
Why we like it: Choose your own funds or alternatively a ready made portfolio. Market-beating savings and discounts of up to 5.5%. No charge to buy and sell funds. Low, tiered annual charges for holding funds, with a maximum of just 0.45% per annum. Free fund updates and analysis from experienced research team. Invest with a financially secure, FTSE 100 company.


yes

FSCS

Online Advised and Managed Account

£25 per month

or £250 lump sum

More Info >
Why we like it: The Munnypot Stocks & Shares ISA is provided in combination with automated online investment advice. Munnypot monitors the performance of your investment 24/7 in relation to your goals. If the performance of your investment deviates negatively from your goal, Munnypot will automatically notify you with advice on how you can get your goal back on track. The low-cost service ensures you keep more of your Munnypot investment returns.  You can choose to withdraw your money for free at any time. Set up your account online in just 15 minutes. The value of investments can go down as well as up, so you could get back less than you invest. Capital at risk.


yes

FSCS

With-Profits Fund

£30 per month

or £500 single

More Info >
Why we like it: You don’t have to make any tricky investment decisions; your money will be invested in Shepherds With Profits Fund, and the bonuses you could receive will depend on the future performance of the fund. To try to achieve higher returns for you, your money is invested in a variety of assets, the majority of which consist of stocks and shares, but also property, bonds and cash. While returns are not guaranteed in stocks and shares investments and the value can go down as well as up, Shepherds apply a process known as ‘smoothing’ that attempts to even out fluctuations in the value and aims to keep a consistent level of bonus payments.


Important information: Investment ISAs are tax-efficient wrappers for long term investments. Capital 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.

Investment ISAs - Income
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential IncomeMore Info
FTSE 100 Defensive Income PlanInvestec Bank Plcyes8 years

7.35%

per annum

More Info >
  • 7.35% per year based on the performance of the FTSE 100 Index
  • Income paid even if Index falls by 20%
  • Alternative option paying up to 6% income if Index falls by up to 40%
  • Plan can mature early each year from year 2 onwards
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfer applications - 29 June 2018
  • Investment deadline for direct and ISA applications - 20 July 2018
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, 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 Monthly Contingent Income PlanNatixisyesUp to 10 years

6.00%

per annum

More Info >
  • Up to 6.00% per year based on the performance of the FTSE 100 Index
  • Income paid even if Index falls by 25%
  • Monthly payments
  • Plan can mature early each quarter from year 2 onwards
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfers - 4 July 2018
  • Investment deadline for direct and ISA applications by cheque - 12 July 2018
  • Investment deadline for direct and ISA applications by bank transfer - 18 July 2018
  • 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
  • May close early if oversubscribed
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

9.8%

per annum

More Info >
  • 9.8% for each year (not compounded) provided the FTSE 100 finishes higher than its starting value (subject to averaging)
  • Potential to mature early, from year 1 onwards
  • Alternative collateralised option also available potentially kicking out from year two onwards at 8.6% pa
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfers - 29 June 2018
  • Investment deadline for direct and ISA applications - 20 July 2018
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, 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
10:10 PlanNatixisyes10 years

11%

per annum

More Info >
  • 11% for each year (not compounded) provided the FTSE 100 finishes above 105% of its starting level
  • Alternative option 1 available returning a potential 7.50% pa with kick out level reducing from 102.5% to to 82.5% over the term
  • Potential to mature early, from year 2 onwards
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline ISA transfers - 25 July 2018 
  • Investment deadline for direct and ISA by cheque - 8 August 2018
  • Investment deadline for direct and ISA by bank transfer - 14 August 2018 
  • Capital is at risk if the FTSE 100 Index has fallen by more than 30% at maturity from its starting value, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £5,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
  • May close early if oversubscribed
FTSE 100 Step Down Kick-Out PlanInvestec Bank plcyesUp to
6 years

7.35%

per annum

More Info >
  • 7.35% 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 also available paying a potential 5.3% pa
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfers - 29 June 2018
  • Investment deadline for direct and ISA applications - 20 July 2018
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, 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.

You may pay into both a stocks and shares (investment) ISA and a cash ISA during the same tax year provided you do not exceed the annual limits. 

Guides

Read our guide to ISAs for information about allowances and ISA transfers.


For more information on how savings and investments are taxed see our Savings and Investments Tax Guide.


ISAs Explained: ISA benefits

  • No tax on income from your ISA
  • No tax on capital gains arising on your ISA
  • No tax when the policy pays out

ISAs Explained: Who can have an ISA?

To open an ISA you have to be aged 18, or 16 for a cash ISA. You must be a resident in the UK. You cannot hold an ISA jointly with, or on behalf of, anyone else.


See the tables for stocks and shares ISAs or visit cash ISAs for cash ISA options.

Fund ISAs - Income
 Product NameISA OptionIncome YieldMore Info
Henderson Strategic Bondyes5.7%More Info >
Newton Asian Incomeyes5.43%More Info >
Newton Higher Incomeyes5.4%More Info >
*Current Income Yields are Gross, Variable and Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below. 

 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.