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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.

Investment Fund ISAs

Invesco Perpetual Monthly Income Plus Fund

from Invesco Perpetual

Income Yield 5.68%

Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in Government bonds and UK equities. You can access this fund through the Standard Life Fund Supermarket.

Henderson Preference and Bond

from Henderson

Income Yield 4.90%

Income Paid Quarterly. To provide a return by investing primarily in sterling denominated preference shares, Government securities, corporate bonds, Eurobonds and other bonds. You can access this fund through the Standard Life Fund Supermarket.

Woodford Equity Income Fund

from Woodford

Income Yield 3.70%

Income Paid Quarterly.The fund’s investment objective is to provide investors with long-term appreciation through investing in stocks primarily listed on the UK stock exchanges. You can access this fund through the Standard Life Fund Supermarket.

Peer to Peer Lending ISAs

CROWD2FUND

from CROWD2FUND

Allows ISA Transfers
Regular Savings
Interest Rate Earn an estimated 8.70% APR on your investments
  • Term: 1 - 5 Years

Why we like it: Crowd2Fund’s Finance ISA is designed to make it easier for savers to invest while managing a diversified portfolio. You can transfer existing ISAs (Crowd2Fund will help you do this) and earn an estimated 8.7% APR* return tax free.

  • Currently 0% platform default rate
  • Access to your capital
  • EIS, SEIS & IFISA tax relief
  • Balance your level of risk
  • *Capital at risk

Investment Income Plan ISAs

Investec FTSE 100 Enhanced Income Plan

from Investec

Allow ISA Transfers
Annual Income 5.04% fixed income
  • Counterparty: Investec Bank plc
  • Term: 6 years
  • 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 - 29 July 2016
  • Investment deadline for direct and 2016/17 ISA applications - 12 August 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 for 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.

Investment Growth Plan ISAs

Investec FTSE 100 Enhanced Kick Out Plan

from Investec

Allow ISA Transfers
Maximum Potential Return 10.00% per annum
  • Counterparty: Investec Bank plc
  • Term: Up to 6 years
  • 10% 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
  • Available for 2016/17 ISA, ISA transfer and direct investment
  • 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
  • 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.

Investment Income Plan ISAs

FTSE Dual Option Contingent Income Plan

from Meteor

Allow ISA Transfers
Annual Income Up to 7.40%
  • Counterparty: Natixis
  • Term: 6 Years
  • Potential quarterly income: 1.85% (equivalent to 7.4% annually)
  • Income paid even if FTSE 100 falls by 20%
  • Potential to kick out quarterly from year 2 onwards
  • Available for ISA, ISA transfers and direct investments
  • Capital is at risk if the FTSE 100 Index falls by more than 40% 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 £5000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term

FTSE Quarterly Contingent Income Plan

from Focus

Allow ISA Transfers
Annual Income Up to 7.20%
  • Counterparty: Credit Suisse AG
  • Term: Up to 6 years
  • Up to 7.2% per year based on the performance of the FTSE 100 Index
  • Income paid even if Index falls by up to 25%
  • Quarterly payments
  • Plan can mature early each quarter from year 2 onwards
  • Available for ISA, ISA transfer and direct investment
  • 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

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.

Investment Growth Plan ISAs

Meteor FTSE Kick Out Plan

from Meteor

Allow ISA Transfers
Maximum Potential Return 10.00% after year 1
  • Counterparty: BNP Paribas
  • Term: Up to 6 years
  • 10.% after year 1 plus additional 10% for each additional year (not compounded) provided the FTSE 100 Index finishes at or above its starting value
  • Potential to mature early, from year 1 onwards
  • Available for ISA, ISA transfer and direct investment
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at the end of the plan, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £5,000
  • 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.

Focus FTSE Kick Out Plan

from Focus

Allow ISA Transfers
Maximum Potential Return 10.00% after year 1
  • Counterparty: Credit Suisse
  • Term: Up to 6 years
  • 10.% after year 1 plus additional 10% for each additional year (not compounded) provided the FTSE 100 Index finishes at or above its starting value
  • Potential to mature early, from year 1 onwards
  • Available for ISA, ISA transfer and direct investment
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at the end of the plan, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £5,000
  • 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.

Deposit Cash ISAs

Investec FTSE 100 Kick Out Deposit Plan

from Investec

ISA Option
Maximum Potential Return 3.25% per annum
  • Deposit Taker: Investec Bank plc
  • Term: Up to 6 years
  • Capital Protected Product*
  • Eligible for the Financial Services Compensation Scheme
  • ISA transfers accepted
  • Opportunity to mature early at year 3, 4 or 5
  • Short/medium term alternative to fixed rates
  • Minimum single Investment - £3,000
  • This plan is not the same as a bank or building society deposit account and you may not receive your initial deposit in full if your capital is withdrawn early
  • Limited offer - deadlines apply. May close early if oversubscribed

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

Important Information: * The return of your initial deposit depends on the ability of the deposit taker (Investec Bank plc) to repay your money. 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.

Share Dealing ISAs

Barclays Share Dealing ISA

from Barclays

  • Trade From (frequent trader rate): £5.95
  • Trade From (standard trader rate): £11.95

Why we like it: ADVFN 2016 Self Select ISA Provider of the year. Trade from £5.95 to £11.95 per deal online. Advanced trading tools - Level 1 and 2 access.

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. Every eligible person has an ISA allowance. You are permitted to invest all or part of this amount in an investment ISA, all in a cash 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.

Whatever kind of ISA you are interested in, as there are a wide range of products, it is worth shopping around to try and find the one that fits your specific needs best. You can view a selection of different kinds of ISAs by using the comparison tables on this website.

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 ISAs

ISAs are a tax-advantageous way to save or invest, check out some of the ISA options below

ISAs Products

Fund ISAs

There are a range of types of fund ISA

Fund ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

Over 500,000 Help To Buy ISAs Opened Since Launch

13th July 2016

If you are saving to buy your first home, save money into a Help to Buy ISA and the government will boost your savings by 25%. So, for every £200 you save, receive a government bonus of £50. The maximum government bonus you can receive is £3,000.

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