JamesCaldwell

Income ISAs

Compare Income ISAs

If you want to gain returns on your investments or interest while making tax savings, an income ISA can offer a convenient and tax-efficient way to save. 

 

James Caldwell, Director

 

Income Investment ISA Selection
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential ReturnMore Info

FTSE 100 Enhanced Income PlanInvestec Bank plcyes6 years5.28%
fixed income per annum
More Info >
  • 5.28% income paid regardless of the performance of the FTSE 100
  • Monthly income
  • Available for NISA, NISA transfer and direct investment 
  • Investment deadline for NISA transfers - 5 December 2014
  • Investment deadline for direct and NISA - 19 December 2014
  • 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 5 Monthly Income PlanMorgan Stanley BVyes6 years7.32%
fixed income per annum
More Info >
  • 7.32% fixed income paid regardless of the performance of five FTSE 100 shares
  • Monthly income
  • Available for NISA, NISA transfer and direct investment 
  • Investment deadline for NISA transfers - 3 December 2014
  • Investment deadline for direct and NISA by cheque - 11 December 2014 
  • Investment deadline for direct and NISA by bank transfer - 17 December 2014
  • Capital is at risk if one or more shares has fallen by more than 50% at the end of the term, in which case your initial investment will reduce by 1% for each 1% fall of the lowest performing share
  • Minimum investment £5,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term

FTSE 4 Quarterly Income PlanCredit Suisse AGyes
6 years
9.2%
per annum
More Info >
  • Up to 9.2% per year based on four FTSE 100 shares staying above 60% of their opening values
  • Quarterly payments
  • Available for NISA, NISA transfer and direct (non-NISA) investment
  • Investment deadline NISA transfers - 23 January 2015
  • Investment deadline for direct and NISA by cheque - 2 February 2015
  • Investment deadline for direct and NISA by bank transfer - 6 February 2015
  • Capital is at risk if one or more shares 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 of the lowest performing share
  • Minimum investment £5,000
  • 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.
Income Fund ISA Selection
Fund ManagerFundFund Manager Initial ChargeYour SavingSavingAMCIncome YieldSelect FundFact SheetMore Info

Newton Higher Income0%4.00%£4270.75%5.4%yesFactsheetMore Info >
Income Paid Quarterly. The objective of the Fund is to achieve increasing distributions on a calendar year basis with long term capital growth. The Fund may also invest in collective investment schemes. See latest fund factsheet for details.

Invesco Perpetual Monthly Income Plus0%5%£5340.63%4.68%yesFactsheetMore Info >
Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.

Invesco Perpetual Distribution0%5%£5340.69%4.7%yesFactsheetMore Info >
Income Paid Monthly. Invesco Perpetual Distribution offers a balance between both income and capital growth through investment in UK based equities and fixed interest securities. See latest fund factsheet for details.
*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. 

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 2014/15 is £15,000 per person. You are permitted to invest all or part of this amount in an investment ISA, or some in a cash ISA and the remainder in stocks and shares.

A stocks and shares income ISA might be for you if…

  • You want to use your ISA allowance to maximize your potential for investment returns, especially at this time of low interest rates. The money you invest in an income ISA offers tangible tax savings. You pay just 10% tax on any income from your investments, regardless of your tax bracket.
  • You have substantial savings - i.e. in excess of £10,000 - to transfer into the ISA. Capital gains are 100% tax-free, which is a real advantage if you want to hold shares and increase your ISA amount over the long term.
  • You're looking to invest for the medium to long term - investment-based accounts generally perform better over time than cash-based accounts, but to achieve this it's likely you'll need to leave your money untouched for at least a minimum period of one year.
  • You're saving with your retirement in mind. Many people use their yearly ISA allowance to invest in shares that can then be sold in the future to buy income funds - the result of which can be a tax-free income during retirement. In fact, recent data shows that savers are now putting more money into ISAs than into pension schemes.

A cash income ISA might be for you if…

  • You want a completely tax-free savings account - you pay no tax at all on the interest you earn in a cash-based income ISA.
  • You're not confident about investing in stocks and shares and want to avoid some of the potential issues, such as fluctuating market.
  • 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, such as a holiday. 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.

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.

www.isa.co.uk is a trading name of Fair Investment Company Ltd which is authorised and regulated by the Financial Conduct Authority.