JamesCaldwell

Stocks & Shares ISAs

Latest investment ideas for your ISA

Your 2014/15 ISA allowance of £15,000 must be used by 5th April 2015.

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
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential ReturnMore Info

FTSE 100 Enhanced Income PlanInvestec Bank plcyes6 years5.64%
fixed income per annum
More Info >
  • 5.64% income paid regardless of the performance of the FTSE 100
  • Monthly income
  • Available for NISA, NISA transfer and direct investment 
  • Investment deadline for NISA transfers - 12 September 2014
  • Investment deadline for direct and NISA - 26 September 2014
  • 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

FTSE 5 Monthly Income PlanMorgan Stanley BVyes6 years7.62%
fixed income per annum
More Info >
  • 7.62% fixed income paid regardless of the performance of five FTSE 100 shares
  • Monthly income
  • Available for NISA, NISA transfer and direct investment 
  • Investment deadline for NISA transfers - 12 September 2014
  • Investment deadline for direct and NISA by cheque - 19 September 2014 
  • Investment deadline for direct and NISA by bank transfer - 24 September 2014
  • Capital is at risk if one or more shares has fallen by more than 50% at the end of the term, in which case your initial investment will reduce by 1% for each 1% fall of the lowest performing share
  • Minimum investment £5,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term

FTSE 4 Quarterly Income PlanCredit Suisse AGyes
6 years
9%
per annum
More Info >
  • Up to 9% per year based on four FTSE 100 shares staying above 60% of their opening values
  • Quarterly payments
  • Available for NISA, NISA transfer and direct (non-NISA) investment
  • Investment deadline NISA transfers - 13 October 2014
  • Investment deadline for direct and NISA by cheque - 21 October 2014
  • Investment deadline for direct and NISA by bank transfer - 27 October 2014
  • Capital is at risk if one or more shares 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 of the lowest performing share
  • 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.
Growth Investment ISA Selection
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential ReturnMore Info

FTSE 4 / FTSE 100 Defensive Kick Out PlanCredit Suisse AGyesUp to
6 years
17%
after 18 months
More Info >
  • 17% after 18 months, or 17% plus an additioanl 6% for each six months thereafter provided four FTSE 100 stocks finish equal to or higher than the required kick out level
  • Potential to mature early every six months, from 18 months onwards
  • Kick out level reduces from 100% to 75% over the term
  • Available for NISA, NISA transfer and direct investment
  • Investment deadline NISA transfers - 22 September 2014
  • Investment deadline for direct and NISA by cheque - 30 September 2014
  • Investment deadline for direct and NISA by bank transfer - 6 October 2014
  • Capital is at risk if one or more stocks has fallen by more than 40% at maturity from their starting value, in which case your initial investment will reduce by 1% for each 1% fall of the lowest performing stock
  • Minimum investment £5,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term

FTSE 100 Enhanced Kick Out PlanInvestec Bank plcyesUp to
6 years
10.5%
per annum
More Info >
  • 10.5% for each year (not compounded) provided the FTSE 100 finishes higher than its starting value (subject to averaging)
  • Alternative collaterised option also available returning a potential 8.25%
  • Potential to mature early, from year 2 onwards
  • Available for NISA, NISA transfer and direct investment
  • Investment deadline NISA transfers - 12 September 2014 
  • Investment deadline for direct and NISA - 26 September 2014
  • 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 Kick-out PlanAviva plc, Barclays Bank plc, Lloyds Bank plc, and The Royal Bank of Scotland plcyesUp to
6 years
8.8%
per annum
More Info >
  • 8.8% for each year (not compounded) provided the FTSE 100 finishes equal to or higher than its starting value
  • Potential to mature early, from year 2 onwards
  • Available for NISA, NISA transfer and direct investment
  • Investment deadline stocks and shares NISA transfers - 3 October 2014
  • Investment deadline for cash NISA transfers - 10 October 2014
  • Investment deadline for direct and NISA - 24 October 2014
  • 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 £10,000
  • 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.
Income Fund ISA Selection
Fund ManagerFundFund Manager Initial ChargeYour SavingSavingAMCIncome YieldSelect FundFact SheetMore Info

Newton Higher Income0%4.00%£4270.75%5.4%yesFactsheetMore 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 Plus0%5%£5340.63%4.60%yesFactsheetMore 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 Distribution0%5%£5340.69%4.7%yesFactsheetMore 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 ManagerFundFund Manager Initial ChargeYour SavingSavingAMCSelect FundFact SheetMore Info

M&G Recovery0%4.00%£4270.75%yesFactsheetMore 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%£4270.75%yesFactsheetMore 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 Managed0%4.50%£4800.75%yesFactsheetMore 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 6th April each year, and for 2014/15 the full individual ISA allowance is £15,000.

 


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 ISA allowance - £15,000 in 2014/15 - 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 £4,000. 

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.

www.isa.co.uk is a trading name of Fair Investment Company Ltd which is authorised and regulated by the Financial Conduct Authority.