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24th
May 2017
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5 investment ISA ideas for your 2017-18 ISA allowance

5 investment ISA ideas for your 2017-18 ISA allowance

The new ISA allowance for the 2017-18 tax year is £20,000, meaning you can have up to £20,000 deposited into one or more ISAs and you won’t have to pay any tax on the interest you earn.

Your ISA allowance can be split between various different types of ISAs, including those intended to give a monthly income and those aimed at more long term saving. You can use you ISA for cash, stocks and shares, depending on what level of return you would like to achieve and the level of risk you are willing to take with your savings.

To help you decide how to invest your savings, we have looked at the various investment ISAs currently available across the market and picked those we think are offering the best deals. The following are our pick of 5 investment ISA ideas for your 2017-18 ISA allowance.

1) Investec FTSE 100 Enhanced Income Plan

Investec’s FTSE 100 Enhanced Income Plan offers a fixed monthly income for the duration of the plan (5 years). You will earn 0.38% interest per month, equivalent to 4.56% gross per year. When the plan ends, you will receive your initial capital back, subject to the FTSE 100 index’s performance.

Features:

  • Fixed monthly income of 0.38% (4.56% AER)
  • 5 year investment term
  • Minimum investment of £3,000
  • Maximum investment of £20,000 (for an ISA account) or £1,000,000 for a non-ISA investment
  • ISA transfers accepted
  • Arrangement fees apply
  • This is a capital-at-risk investment

With current longer term savings currently offering interest rates at around 2.20% fixed, a 4.56% fixed income could be a good investment if you are willing to risk your capital.

Click here for more information about the Investec FTSE 100 Enhanced Income Plan »

2) Focus FTSE Monthly Income Plan

The Focus FTSE Monthly Income Plan offers a fixed monthly income of 0.35% (equivalent to 4.20% annually). It can be used for your 2017/18 ISA allowance, as well as direct investment and pension investments. The plan is also available to businesses, charities and trusts. This is a capital at risk investment, where your capital is returned unless the FTSE falls by more than 40%.

Features:

  • Fixed monthly income of 0.35% (equivalent to 4.20% annually)
  • 6 year investment term
  • Minimum investment of £5,000
  • Maximum investment of £20,000 for ISA investments (no maximum for direct investments)
  • Arrangement fees apply
  • This is a capital-at-risk product

Again, this offers significantly better returns than current long term savings rates, so this can be a good investment if you are happy with the level of risk to your capital.

Click here for more information about the Focus FTSE Monthly Income Plan »

3) Investec Enhanced Kick Out Plan

The Investec Enhanced Kick Out Plan offers the potential for a 10.25% annual return in years 1, 2, 3, 4, 5 or 6. The advantage with this kind of plan is that it can provide a competitive return even when the FTSE stays relatively flat.

With this plan, there is the potential for maturity at the end of each year of the plan, up to 6 years, with a payment equal to 10.25% per annum (not compounded). This happens if the five-day average closing level of the FTSE 100 is higher than the initial index level when the plan begins.

Features:

  • Potentials returns of 10.25% per annum in years 1, 2, 3, 4, 5 or 6
  • Investment term of up to 6 years
  • Minimum single investment of £3,000
  • Maximum 2017/18 ISA investment of £20,000
  • Maximum non-ISA investment of £1,000,000
  • ISA transfers accepted
  • Arrangement fees apply
  • This is a capital-at-risk product

Click here for more information about the Investec enhanced Kick Out Plan »

4) Virgin Money Stocks and Shares ISAs

Virgin Money offer a range of stocks and shares ISAs for those looking to invest with their 2017/18 ISA allowance. This allows you to earn a return on your investments without paying income tax on the proceeds.

Virgin Money’s range of funds include:

Bond and Gilt Fund – Virgin’s lowest risk fund which puts your investment into government-issued bonds and highly rated companies.

Bond, Gilt and UK Share Fund – This fund splits your investment across various UK shares and lower risk bonds from the government and highly-rated companies.

Bond, Gilt, UK and Overseas Share Fund – This spreads your investment across a mix of different types of assets, including overseas shares. This gives your investment more diversity.

UK FTSE All-Share Fund – This fund invests your capital into 600+ companies on the FTSE All-Share Index.

Global Share Fund – With this fund your investment goes into shares across different countries and regions, creating a geographically diverse investment portfolio.

As with any stocks and shares investment, the value of your investment can go down as well as up with any of these funds. You therefore need to weigh the potential returns against the risk to your capital.

Click here for more information about the Virgin Money Stocks and Shares ISA »

5) Nutmeg ISAs

Nutmeg ISAs provide flexible, tax-efficient long term investing. They offer straightforward investment ISAs with a number of key advantages.

Features of Nutmeg ISAs include:

  • A diversified portfolio managed by an experienced team
  • Minimum investment of £500
  • No minimum investment period
  • Create separate investments at different risk levels for your various savings goals
  • Monitor your investments’ performance online 24/7
  • Withdraw your money anytime
  • Pay a low fee of between 0.25-0.75%
  • Set up a new ISA online in just 10 minutes
  • Investments are placed in high-quality, low-cost exchange traded funds

Click here for more information about Nutmeg ISAs »

Compare investment ISAs

A wide range of investment ISAs are available from across the market, offering different benefits and restrictions. You can use our website to compare investment ISAs and see what offers the best deal for you.

Investment Income Plan ISAs

FTSE 100 Enhanced Income Plan

from Investec

Allow ISA Transfers
Annual Income 4.56% fixed income
  • Counterparty: Investec Bank plc
  • Term: 5 years

Why we like it: Fixed income, fixed term, monthly payments and your capital back unless the FTSE falls by more than 50%. By offering a high fixed income rather than a variable income based on the performance of the stock market, this plans offers something different to income seekers.

  • 4.56% income paid regardless of the performance of the FTSE 100
  • Monthly income
  • Available for 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
  • 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.

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

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