Compare First Direct ISAs
Compare ISAs from First Direct and other ISA options available.
Investment ISAs put your capital at risk & you may get back less than you originally invested
What you're looking for isn't available; however, these brands may offer suitable alternatives
- Fund Choice: Access 40,000+ UK, US and international shares on 17 global exchanges. Choose from over 3,000 funds
- Invest From: £25 pm
Why we like it: An award-winning ISA that gives you complete control. The second largest platform in the UK with the widest choice of investment options in the market including funds, investment trusts, ETF’s and more. Open online in less than 10 minutes. Access to expert independent ideas and analysis. Low cost fees and trading. Capital at risk.
- Fund Choice: Offering commission-free DIY investing or low-cost, professionally managed income or growth portfolios built for you
- Invest From: £100
Why we like it: Make the most of the world’s best ETFs commission free. Build your own portfolio commission free or leave it to our experts for just 0.25%. Zero‑ISA fees. Choice of 600+ ETFs. Low cost, diversified, index-tracking of stock markets, bonds and commodities. DIY or Managed. Capital at Risk
- Fund Choice: Nutmeg offer 5 diversified portfolios with ETFs, using technology to keep charges low
- Invest From: Min. £500 single
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. 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. Tax treatment depends on your individual circumstances and may change in the future. Capital at risk. Approved by Nutmeg 24/02/2023
- Fund Choice: Choose from a range of 36 funds and ETFs and 20 US stocks. Select one of three simple starting options with a range of tracker funds or build your own investment portfolio by customising your investment options
- Invest From: £1
Why we like it: Choose from a range of 36 funds and ETFs and 20 US stocks to invest with Moneybox. Earn 3.8% AER Variable on any uninvested cash you hold. There are additional fees charged directly by the fund provider. Please check the key investor information document (KIID) for a particular fund for more information. Keep things simple and get started with one of our three starting options: Cautious, Balanced or Adventurous – and customise your investments to align with your values. Open with as little as £1. When investing, your capital is at risk
- Fund Choice: 10 managed portfolios to choose from. Choose your risk profile and have an investment Plan built and managed for you
- Invest From: £1
Why we like it: Choose your level of risk from cautious to adventurous and have a plan expertly created and managed for you. Create multiple Plans – including Ethical Plans – with different risk levels. Invest as little or much as you like, add regular payments and top up whenever you like. Withdraw money or transfer out without notice or penalty fees. Wealthify app lets you check how your Plan is performing, manage your transactions and provide investment news and insights. Simple annual management charge of 0.6%
- Fund Choice: Invest in over 2,000 funds, shares and more across 25 markets
- Invest From: £25 pm
Why we like it: Invest in over 2,000 funds, shares and more across 25 markets. Invest from £25 per month. Which? Recommended Provider for Investment Platforms 2019–2023. Low-cost online dealing from £3.50. Open your account in minutes from app or website, manage your portfolio on the move. FSCS protected. Capital at risk
- Fund Choice: Invest in 6,100+ US, UK & European stocks & ETFs commission-free
- Invest From: £2
Why we like it: Commission-free investing: No fees for buying or selling stocks (other charges may apply). Support: Fast and friendly customer support. A wide range of investments: 6,100+ US, UK, and European stocks, ETFs, and investment trusts. Low monthly fees: From £4.99/month. Capital at risk. Other charges may apply
- Fund Choice: Invest in the Shepherds With Profits Fund which offers medium to low risk investing, with the aim of growing your money in a smooth manner over the long term
- Invest From: £30 pm
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. Capital at risk.
- Fund Choice: Over 2,500 funds, UK shares, investment trusts and ETFs or choose Ready Made & Managed Portfolios
- Invest From: No minimum
Why we like it: Pick your own investments or choose a Ready-made Portfolio. Some of the lowest investment ISA account fees available. Tiered service fees of 0.2% or less a year, no set-up fees and share dealing for just £4.95 per trade. You don’t pay anything to open your ISA or buy funds, and share dealing costs just £4.95 per trade. Voted Best ISA Provider at the City of London Wealth Management Awards 2020. Capital at risk.
- Fund Choice: Choose from over 3,000 funds, shares, investment trusts and more to build your portfolio
- Invest From: £25 pm or £100 lump sum
Why we like it: Hargreaves Lansdown are the UK’s no. 1 investment platform for private investors – kickstart your investing with their award-winning ISA. Choose your own investments with expert research and ideas to help you, or simply pick a ready-made portfolio. Manage via website, app or phone. Capital at risk.
- Fund Choice: Invest in over 2,000 funds, plus Exchange Traded Funds, Investment Trusts, UK & International shares and more. Five Ready-made Investment funds if you’re not sure where to invest. Capital at risk.
- Invest From: £50
- Fund Choice: Invested in a single fund - the Unitised With-Profits fund. A mixed managed fund from Scottish Friendly where premiums are pooled with those of other clients and returns are linked to the performance of the underlying assets within the fund
- Invest From: £10 pm o r £100 single
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. When you set up a My MoneyBuilder Select (ISA), your money will be invested in a single fund – the Unitised With-Profits fund. A mixed managed fund from Scottish Friendly where premiums are pooled with those of other clients and returns are linked to the performance of the underlying assets within the fund. Remember the value of investments can go down as well as up, and you could get back less than you’ve paid in. If you cash in before the end of 5 years there will be a £50 deduction from your cash-in value.
- Fund Choice: Choose your risk profile and have it matched to an investment portfolio expertly built and managed.
- Invest From: £1,500
Why we like it: Answer questions about your goals, financial situation and attitude to risk, and Moneyfarm will recommend the right ISA portfolio for you, built and managed by experts to help your money grow. You’ll always be invested in a portfolio that’s suitable for you, and you can manage this through the Advice Centre. See what you’re invested in, how you’re performing and how much you’re paying anywhere and any time with the Moneyfarm app. Add money to your ISA by setting up a direct debit, investing a lump-sum, or by transferring old ISAs for free. Capital at risk.
- Trade From (frequent trader rate): £3.00
- Trade From (standard trader rate): £8.00
Good to know: Pay zero commission on US share trades, and just £3 on UK share trades, when you trade three or more times a month with IG. No admin or transfer fees. Custody fee of £24 per quarter, charged if you hold share dealing or ISA assets at the end of the quarter. Capital at risk. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider
- Fund Choice: Choose from over 4,000 investment options, including one of the widest fund ranges in the UK. With online guidance tools and expert fund ideas to help you choose
- Invest From: £25 pm
Why we like it: This award-winning ISA has an extensive range of investment options, including thousands of funds and shares, plus a guidance service to help you find investment ideas. There is a low service fee (typically 0.35%), easy online application process and apps to manage your money on the move. Additional charges apply depending on your choice of investments. Plus, everything is backed by Fidelity’s 50 years of investment experience. Boring Money Best Buy ISA 2023
- Fund Choice: TILLIT filter the market and select the best-in-class active and passive funds across asset classes, regions and styles
Why we like it: Let Tillett filter the market for you. From well-known classics to trailblazers and wildcards. No one needs 5,000 funds. Get breadth and variety, without the choice paralysis
- Fund Choice: Save and invest across investment funds, cash savings, and real assets
- Invest From: No minimum
Why we like it: Chip is an award-winning wealth management app designed for our generation. The UK’s only app that enables you to invest in unique and iconic real assets, as well as investment funds and savings accounts. Save and invest your way, or use our clever tech to build wealth automatically. Our range of diversified investment funds are managed by some of the world’s biggest asset managers, like BlackRock. Invest in things that matter to you, like Clean Energy and Healthcare Innovation, or explore funds that match a wide range of risk appetites, from Cautious to Adventurous. Or, if you want to build up your cash savings, we work with UK partner banks to bring you free FSCS protected savings accounts with competitive interest rates. Chip does not provide tax advice. Tax treatment depends on individual circumstances and may be subject to change in the future When investing, your capital is at risk
First Direct ISA
Who are First Direct?
First Direct are a banking division of HSBC providing internet and telephone retail banking.
Headquartered in Leeds, First Direct specialise in offering personal finance products to its retail customers, including: credit cards, loans, savings accounts, mortgages, and stockbroking accounts.
Among these products are First Direct’s ISA accounts that are available as Cash ISAs and Stocks and Shares ISAs.
What is an ISA account?
An ISA account is a tax-free savings account that you can invest up to £20,000 into per tax year.
While standard savings accounts are subject to capital gains tax and income tax, ISA account investments are completely sheltered from these taxes.
There are two main types of ISA accounts, and First Direct offer both of them:
- Cash ISAs
- Stocks and Shares ISAs
What is the difference between a Cash ISA and a Stocks and Shares ISA?
Cash ISAs cannot go down in value, and they provide investors with fixed or variable rates of interest. Typically, the shorter the length of term for fixed-interest ISAs, the lower interest rates you’ll get.
Variable interest Cash ISAs usually offer the lowest rates, but you have great flexibility as to when you can access your money and you usually won’t be charged for doing so.
Stocks and Shares ISAs allow you to invest directly in the stock market within the tax-free wrapper of an ISA. Stocks and Shares can go both up and down in value so they are higher risk investments; however, their growth potential is much higher compared to cash savings.
What type of Cash ISAs do First Direct provide?
First Direct offer a variable-rate, instant access Cash ISA, meaning you have the flexibility of withdrawing whenever you like, free of charge.
The interest rates are lower compared to fixed-rate Cash ISAs, but they require you to hold your investments for a fixed term between 1 and 5 years or you’ll be charged for withdrawing.
As it’s a variable rate ISA, the interest rates are not guaranteed like a fixed rate ISA is, so you could earn more or less than the quoted interest rate.
What type of Stocks and Shares ISA do First Direct provide?
First Direct’s Stocks and Shares ISA is specifically a Sharedealing ISA that allows you to buy and sell shares on the stock market and hold them an ISA wrapper.
Unlike some other Stocks and Shares ISA platforms, First Direct’s Sharedealing ISA cannot hold funds like Unit Trusts and OEICs as these are not traded on a live stock exchange.
Therefore, here are the top 3 types of stocks held in a First Direct Sharedealing ISA:
- Shares – a holding in one individual company
- Investment Trusts – a holding in an investment company that invests client money within a specific market or sector, like in FTSE 100 companies, for example
- Exchange Traded Funds (ETFs) – a holding in a fund that tracks a certain market or stock index by investing in the underlying companies and aiming to mirror its performance
What are the charges for a First Direct ISA?
First Direct Cash ISAs:
First Direct’s variable rate Cash ISAs are free of charge.
First Direct Stocks and Shares ISAs:
There is technically no ongoing charge for a First Direct Stocks and Shares ISA; however, you must have a First Direct Sharedealing account to open one, and this costs £10.50 per quarter which totals £42 per year.
They also charge for share dealing:
- £10.50 per online trade for the first 9 trades per quarter, and then £7.95 after this
- £25 per telephone deal
How do I open a First Direct ISA?
You can open a First Direct ISA online via their online platform.
To open a Share Dealing ISA you will first need to open a standard Share Dealing account, which you can also do online.
For a Cash ISA, you can just register for the ISA directly without needing a Share Dealing account.
You’ll need to provide some basic personal information to create an account including your National Insurance Number, and you’ll need to make a contribution to start investing.
Can I transfer my existing ISAs to a First Direct ISA?
Yes, you can transfer any previous Cash or Stocks and Shares ISAs into a First Direct ISA.
The great thing about ISA transfers is that they don’t count towards your annual ISA allowance, so you can transfer as many ISAs in one year while also adding up to £20,000 of new money.
To transfer your ISA, you’ll need to complete an ISA transfer form with First Direct. They will then request your ISA transfer for you and see it through to completion.
Make sure to check with your existing provider whether you will be charged for transferring so that you know what to expect.