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Stocks & Shares ISAs

Latest investment ideas for your ISA

Your 2013/14 investment ISA allowance of £11,520 must be used by 5th April 2014.

Use our selection of the latest investment ISAs - including income and growth options, defined return and defined term investment plans, investment funds, and more - to help you decide where to use your ISA allowance.

 

James Caldwell, Director

Income Investment ISA Selection

Provider	Plan Name	Counterparty	ISA Option	Term	Maximum Potential Return	More Info
	FTSE 100 Enhanced Income Plan	Investec Bank plc		6 years	5.76% fixed income per annum	More Info >
5.76% income paid regardless of the performance of the FTSE 100 Monthly income Available for ISA, ISA transfer and direct investment  Investment deadline for ISA transfers - 10 May 2013 Investment deadline for direct and ISA - 24 May 2013 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. 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.

Growth Investment ISA Selection

Provider	Plan Name	Counterparty	ISA Option	Term	Maximum Potential Return	More Info
	FTSE 100 Enhanced Kick Out Plan	Investec Bank plc		Up to 5 years	8.5% per annum	More Info >
8.5% 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 ISA, ISA transfer and direct investment Investment deadline ISA transfers - 10 May 2013 Investment deadline for direct and ISA - 24 May 2013 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
	FTSE 100 Defined Returns Plan Investec Version	Investec Bank plc		Up to 5 years	67.5%	More Info >
Fixed return of either 40.5% at the end of year 3 or 67.5% at the end of year 5 provided the FTSE 100 finishes higher than its starting value (subject to averaging) Potential to mature early at the end of year 3 Available for ISA, ISA Transfer and Direct Investment Investment deadline ISA transfers - 10 May 2013 Investment deadline for direct and ISA - 24 May 2013 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
	UK Giants Selector Plan	Morgan Stanley		6 years	Unlimited	More Info >
Growth linked to the performance of the best-performing 11 shares from the 20 largest FTSE 100 companies Available for ISA, ISA transfer and direct investment Investment deadline ISA transfers - 24 May 2013 Investment deadline for direct and ISA - 3 June 2013 Capital is at risk if the FTSE 100 Index 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 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. 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 Manager	Fund	Fund Manager Initial Charge	Your Saving	Saving	AMC	Income Yield	Select Fund	Fact Sheet	More Info
	Newton Higher Income	0%	4.00%	£427	1.50% 1.30%	5.1%		Factsheet	More 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 Plus	0%	5%	£534	1.25% 1.05%	6.1%		Factsheet	More 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 Distribution	0%	5%	£534	1.38% 1.18%	5.5%		Factsheet	More 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. 

Growth Fund ISA Selection

Fund Manager	Fund	Fund Manager Initial Charge	Your Saving	Saving	AMC	Select Fund	Fact Sheet	More Info
	M&G Recovery	0%	4.00%	£427	1.50% 1.30%		Factsheet	More Info >
The Fund’s sole aim is capital growth by investing predominantly in a diversified range of securities issued by companies which are out of favour, in difficulty or whose future prospects are not fully recognised by the market. See latest fund factsheet for details.
	Newton Real Return	0%	4.00%	£427	1.50% 1.30%		Factsheet	More Info >
Income Paid Twice Yearly. Aims to achieve significant real rates of return through investments in both UK and international equities and bonds. See Factsheet for latest details.
	Investec Cautious Managed	0%	4.50%	£480	1.50% 1.30%		Factsheet	More Info >
The Fund aims to provide a combination of income and long term capital growth by investing conservatively in a diversified portfolio of equities, bonds and other fixed interest securities of high quality and marketability. At all times the Fund’s equity exposure will be limited to a maximum of 60% of the portfolio value. See latest fund factsheet for details.

Stocks and Shares ISAs  

Unlike a cash ISA - which is a straightforward tax-free savings account - a stocks and shares ISA allows you to invest money up to a certain amount without paying tax. This runs from 6^th April each year, and for 2013/14 the full individual ISA allowance has been set by at £11,520.

What is a stocks and shares ISA?

A stocks and shares ISA allows you invest your tax-free allowance while only paying 10% tax on any investment income you make. This can add up to a substantial saving when you consider that, on dividends paid on a non-ISA investment, an additional rate taxpayer would have to part with 42.5% in tax.

You have a variety of options when it comes to using your stocks and shares ISA allowance. You can:

• Invest your full ISA allowance in a stocks and shares ISA.
• Put anything up to the maximum amount set aside for your cash ISA allowance - £5,760 in 2013/14 - into a cash ISA, and the remaining balance in a stocks and shares ISA.
• Use your stocks and shares ISA allowance for shares - excluding shares traded on the Alternative Investment Market (AIM) - unit trusts, investment trusts, open-ended investment companies (OEICs), life insurance policies, corporate bonds, and gilts.

Are you ready to invest in a stocks and shares ISA?

A stocks and shares ISA, as with all investments, involves an element of risk, so it's important that you're in a sufficiently stable financial position. Before you open a stocks and shares ISA, make sure that:

• Your debts are under control - you've either paid them off or have affordable arrangements in place to do so.
• You have emergency savings that you can access easily if something unexpected occurs - if your car breaks down or you're made redundant, you'll need savings that you can use straight away.

If you're very new to saving and don't yet have a basic emergency fund, you may find that a cash ISA is more suitable for you at this stage. Once you've built up some accessible savings in this way, you might then want to consider a stocks and shares ISA, too.

Top ten things to consider when choosing a stocks and shares ISA

• You should be prepared to invest for the medium to long term with a stocks and shares ISA - for example, for five years or more.
• If you think you might require access to your cash in the next couple of years, a stocks and shares ISA may not be the right choice for you. Share prices can be very variable - especially in the current financial climate - and so if you were to withdraw your investment in the next twelve to eighteen months, you could end up with less money than you started with. 
• Different stocks and shares ISAs have different investment options. These range from £50 per month (e.g. through a fund) to a specified minimum investment (e.g. £1,000).
• Some ISA providers will give you online access to your account, allowing you to see the investment performance of your ISA and keep up to date with any charges incurred.
• If your stocks and shares ISA isn't performing as well as you'd like, you will usually be permitted to transfer it another provider. To do this, speak to your new ISA manager who will arrange the transfer, allowing you to avoid losing any tax benefits by withdrawing your cash.
• You can transfer shares you get from an HMRC-approved SAYE (save as you earn) scheme run by your employer, or a share incentive plan, into a stocks and shares component of an ISA without  incurring capital gains tax, up to your annual ISA allowance.
• You will not be able to transfer any existing non-ISA shares, or shares you've inherited, into a stocks and shares ISA.
• With a stocks and shares ISA, there is greater long-term growth potential than a cash ISA - however, bear in mind that the value of your investment can go down as well as up.
• If you have a stocks and shares ISA from a previous tax year, you're permitted to move this into a current stocks and shares ISA or split it between more than one stocks and shares ISA.
• If you want to open a junior ISA for your child, you can also invest in stocks and shares on their behalf up to a maximum of £3,720.