Top 10 Investment ISAs

£15,240 New ISA (NISA) allowance available now...

Oliver Roylance-Smith, Director

"Since 1st July 2014 the rules around ISAs have changed significantly - all existing ISAs have now become New ISAs or 'NISAs' - and since 6th April 2016 there is a NISA allowance of £15,240, all of which can go into either cash or stocks & shares (Investment ISAs), or a mixture of both. You also have the freedom to transfer from cash to investments and vice versa (Investment ISA to Cash ISA was previously not allowed). For those considering their transfer options, or if you simply want to take advantage of this increased allowance now and start protecting your returns from the taxman, we feature our Best Investment ISAs along with our Top 10 Investment ISA Plans."

Oliver Roylance-Smith , Head of Investments and Savings

Top 10 Investment ISA Plans

Investment ISA Plans are fixed term investments that offer a defined return for a defined level of risk, with income or growth returns normally linked to the performance of an underlying Index (such as the FTSE 100) so you know exactly what has to happen to receive any stated returns. There are also fixed income Investment ISA Plans where you receive a fixed income regardless of the performance of the stock market. All of these plans also combine some capital protection from a falling stock market and as such can offer a compelling balance of risk versus reward.

Top 10 Investment ISA Plans - Fixed Income
ProviderPlan NameCounterpartyISA OptionTermAnnual IncomeMore Info
FTSE 100 Enhanced Income PlanInvestec Bank plcyes6 years

5.04%

fixed income

More Info >
  • 5.04% income paid regardless of the performance of the FTSE 100
  • Monthly income
  • 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. 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.
Top 10 Investment ISA Plans - 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
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.
Top 10 Investment ISA Plans - 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
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.
Top 10 Investment ISA Plans - Defensive Growth
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential ReturnMore Info
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
FTSE 100 Defensive Kick-Out PlanInvestec Bank plcyesUp to
6 years

7.75%

per annum

More Info >
  • 7.75% for each year (not compounded) provided the FTSE 100 finishes above 90% of its starting value
  • Potential to mature early, from year 3 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 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
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
FTSE Defensive Kick Out PlanCredit Suisse AGyesUp to
6 years

7.30%

per annum

More Info >
  • Potential early maturity return of 7.30% x the number of years the plan has been active
  • Maximum 6 year structured investment plan
  • Potential for early maturity from year 2
  • Kick out level required reduces by 20% over term of plan
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfer applications - 30 November 2016
  • Investment deadline for direct & ISA applications by cheque - 8 December 2016 
  • Investment deadline for direct & ISA applications by bank transfer - 14 December 2016
  • Capital at risk
  • Repayment of your capital and payment of any return depends on the performance of the FTSE 100 Index and the ability of the counterparty Credit Suisse AG to pay at maturity
  • Arrangement fee applies
  • If you decide to sell the plan early, you may get back less than your original investment
  • May close early if oversubscribed
FTSE Step Down Kick Out PlanNatixisyesUp to
6 years

7.15%

per annum

More Info >
  • Potential early maturity return of 7.15% x the number of years the plan has been active
  • Maximum 6 year structured investment plan
  • Potential for early maturity from year 2
  • Kick out level required reduces by 20% over term of plan
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfer applications - 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 at risk
  • Repayment of your capital and payment of any return depends on the performance of the FTSE 100 Index and the ability of the counterparty Natixis to pay at maturity
  • Arrangement fee applies
  • If you decide to sell the plan early, you may get back less than your original investment
  • 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 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.

Your 5 Minute Guide to the New ISA for 2016/17


What is an ISA?

Individual Savings Accounts (ISAs) are a tax-efficient wrapper for your money – they offer a way of saving and investing without paying any tax on the returns you make, whether this is income or capital gains. ISAs changed significantly on 1st July 2014 – read on to find out what these changes mean for you and your savings.

Who are ISAs for?

ISAs are available to UK residents over 16. If you are aged between 16 and 18 you can hold a Cash ISA but cannot open a Stocks and Shares ISA. Each person has their own ISA allowance for each tax year, and once it’s gone, it’s gone, so it makes sense to maximise the tax-reduction properties of ISAs while you can. ISAs should be your first savings port of call in order to avoid paying tax unnecessarily on your investments.

What is the New ISA?

In the recent Budget the Chancellor promised to increase the ‘simplicity, flexibility and generosity’ of ISAs. As a result, there will now be a single ISA which has been named the new ISA (or ‘NISA’) which gives you a bigger tax break than ever before and more flexibility about how you can use them.

When do the New ISA rules come into effect?

  • These new rules came into effect on 1st July 2014

What are the key changes?

The key changes that will be brought in include:

  • New ISA allowance - The ISA allowance rose to £15,000. Since 6th April 2016, the 2016/17 tax year limit is £15,240
  • Improved flexibility – Savers can now split their ISA allowance between cash ISA and stocks and shares ISAs in whatever proportion they wish. This is especially welcome news for people who want to use their entire ISA allowance for cash savings.
  • Increased ISA transfer potential – Savers can now transfer from a stocks and shares ISA to a cash ISA, or the other way around. Previously, transfers from stocks and shares ISAs to cash ISA were not permitted.
  • Tax-free interest in stocks and shares ISAs – The pre-NISA regulations allowed transfers from a cash ISA to a stocks and shares ISA, but not the other way round. Since 1st July 2014 savers have been able to transfer from one type of ISA to the other without this limitation.
  • Improved tax efficiency – You can now earn tax-free interest on cash held in a NISA. (Previously, with the exception of a Cash ISA, any cash held within the stocks and shares element of an ISA was subject to a 20% charge on the interest earned - paid to the HMRC).
  • Higher Junior ISA limit – The limit for junior ISAs rose to £4,000. Since 6th April 2016 the 2016/17 tax year limit is £4,080.

How much can I hold in a New ISA?

  • From 6th April 2016, the limit is £15,240 for the 2016/2017 tax year
  • For a couple that means they can put aside £30,480 for this tax year which is a generous tax break.

Can I now have a single New ISA for both my cash and stocks and shares investments?

Yes, you can now hold cash tax-free within your Stocks and Shares NISA if you wish and your provider allows this. However, many savers may prefer to hold separate accounts for cash and stocks and shares investments, and can continue to do so.

What happens to existing ISAs?

  • All ISAs became New ISAs on 1st July 2014, including ISAs opened from 6th April 2014 to 30th June 2014

What amounts can be transferred from a Stocks and Shares NISA to Cash NISA?

Different rules will apply depending upon when you paid the relevant amounts into your Stocks and Shares ISA. If you wish to transfer savings relating to any current year’s payments to your account: (i.e. amounts you have paid in since 6th April 2016), you must transfer these as a whole.

However, any savings relating to payments to your account in earlier years (amounts you have paid in before 6th April 2016) can be transferred to a Cash NISA in whole or in part. Not all ISA providers will allow part transfers, so you should check this with the provider of your Stocks and Shares NISA when deciding whether to transfer.

Can I transfer savings back again?

Yes – since 1st July 2014 you can transfer between Cash and Stocks and Shares NISAs as many times as you wish.



New ISA key benefits

  • Shelter cash or investments of up to £15,240 from tax (£30,480 for a couple)
  • ISA limits set to increase annually
  • You pay no capital gains tax on the returns from your ISA
  • No further income tax to pay
  • You don’t have to mention ISAs on your tax return
  • You have complete freedom about how you use the money in your ISA

 

 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.