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ISAs Explained

How to get started with ISAs
ISAs are an excellent way to put money aside for the future while enjoying the advantage of tax-free interest. By familiarising yourself with the ins and outs of these tax-efficient savings and investment options, you can enjoy the full range of benefits available.

Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Barclays

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,000+ funds
  • Invest From: £50 per month or just £5 single

Why we like it: Barclays Stockbrokers has been voted ‘Self Select ISA Provider of the Year’ at the ADVFN International Financial Awards 2016. Choose from over 2,000 funds, shares, ETFs, investment trusts, gilts, bonds and more. Now with ISA flexibility, withdraw and replace cash from a flexible ISA during the same tax year without it counting towards your annual ISA allowance.

DIY Fund ISA

from Standard Life

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,500 Funds To Choose From
  • Invest From: £50

Why we like it: Let award winning experts manage your funds with the Easy Option ISA or choose your own funds with the DIY Option ISA with over 2,500 funds to choose from. Start investing from as little as £50 per month and manage your account online.

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.

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

Easy Access Cash ISAs

35 Day Notice Cash ISA

from Bank of Cyprus

Interest Rate (AER) 0.75%
  • Term: Easy Access

Why we like it: Bank of Cyprus UK offer a great Easy Access ISA with a top rate of interest. You are covered by the UK FSCS scheme.

  • Access to funds subject to 35 days notice
  • Open account with £500

Calculate your interest with this plan

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

ISA Facts

Individual Savings Accounts (ISAs) are a way of saving and investing without paying any tax on the returns you make.

ISAs were launched in the UK in 1999 to encourage people to save. 

They allow you to earn interest on your savings without paying tax on it, and to invest in stocks and shares without being liable for tax on any returns you make.

ISAs were introduced to replace Personal Equity Plans (PEPs). Initially savers had the option of a mini ISA, which allowed investments in either cash or stocks and shares, or a maxi ISA, which combined both elements in one account. 

The two current types of ISA - cash ISAs and stocks and shares ISAs - replaced the mini and maxi ISAs in 2008.

Benefits of ISAs

For UK residents, ISAs are an excellent way of saving - in fact, they should be your first savings port of call in order to avoid paying tax unnecessarily on your investments.  

  • The primary benefit of ISAs is the tax advantage that allows individuals to profit from savings or shares without paying income or capital gains tax on that return.
  • The secondary benefit is that you are saving some of your income. 

Whether you've a particular savings goal in mind or you just want to ensure you've got an emergency fund tucked away, an ISA can provide a simple way to help achieve this.

Types of ISAs

ISAs are available in two main types; within each type of ISA you can choose from a range of products to create a savings portfolio tailored to meet your needs. The two types of ISAs are:

  • Cash ISAs, which work like a regular savings account and feature the added benefit of tax-free interest.
  • Stocks and shares ISAs, which allow you to invest in funds, structured investments, or in the stock market. This extra risk can make for a potentially higher return.

Within the two types of ISA there are a range of options to choose from. For example, Cash ISA providers, such as banks and building societies, may offer both instant access and fixed-rate cash ISAs. This allows savers to select the product that best fits their requirements.

Stocks and shares ISAs can be invested into many different types of funds, structured investments, and directly into shares. This allows you to choose where you want to invest and how much risk you want to take with your money.

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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ISA.co.uk is a trading style of Fair Investment Company.

We've been comparing and recommending ISAs for many years so you can trust you're in good hands.

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