skip to main content
Homepage /

Monthly Income ISAs

Monthly Income ISA Options

Tax Free Monthly Income Options For Your Annual ISA. You Can Transfer An Existing ISA Into These Plans If You Are Seeking A Higher Income Yield On Your Money.

Investment Fund ISAs

High Income Trust ISA

from Legal & General

Income Yield 4.70% pa - Interest Payable Quarterly*

Why we like it: The Legal & General High Income Trust is designed for investors looking for income or growth from an investment in bonds. To see more information about this fund go to the L&G website and select "Pick your Own Funds". You can invest up to £20,000 this tax year, with a low minimum of £100 lump sum or £20 per month, and you can manage your account easily online.

This fund is available via: Legal and General investment platform »

*Annualised yield as at 30/11/2020

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Multi Manager High Income

from Hargreaves Lansdown

Income Yield 4.46% pa - Interest Payable Monthly*

Why we like it: The Hargreaves Multi Manager High Income fund aims to deliver a high monthly income to clients by blending different types of funds and moving between different areas of the market when more attractive opportunities emerge. HL also aim to grow this income payment over time and therefore may invest in higher risk smaller companies they believe offer great potential for long term capital growth.

This fund is available via: Hargreaves Lansdown investment platform »

*Historic yield as at 31/12/2020

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Monthly Distribution

from Artemis

Income Yield 3.70% pa - Interest Payable Monthly*

Why we like it: If you are looking for a high income yield this fund is suitable for long term investors drawing regular income from their portfolios. With a focus on high yield bonds and shares, the fund manager is an experienced bond investor who has a flexible approach to seeking out the best income opportunities.

This fund is available via: Interactive Investor investment platform »

*Historic yield as at 30/9/2020

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Moneybuilder Income

from Fidelity

Income Yield 2.89% pa - Income Paid Monthly*

Why we like it: A fund with a conservative approach to bond investing. The focus is on quality companies that are in good financial health and generate enough cash to keep paying bondholders. Aims to provide a relatively steady income and a small amount of growth, without taking excessive risks. It could help diversify a portfolio focused on shares, or be used as a way to limit volatility during tougher times for stock and bond markets. 

This fund is available via: Fidelity investment platform »

*Distribution Yield as at 30/11/2020

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Managed Monthly Income Trust ISA

from Legal & General

Income Yield 1.70% pa - Interest Payable Monthly*

Why we like it: The Legal & General Managed Monthly Income Trust is designed for investors looking for income or growth from an investment in bonds. To see more information about this fund go to the L&G website and select "Pick your Own Funds". You can invest up to £20,000 this tax year, with a low minimum of £100 lump sum or £20 per month, and you can manage your account easily online. 

This fund is available via: Legal & General investment platform »

*Distribution yield as at November 2020

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

What is a Monthly Income ISA?

A high income ISA is a way of using your ISA allowance that aims to provide you with a regular tax-efficient payment on your investment or savings, with an emphasis on achieving the highest income possible. This income may be paid on a quarterly, six-monthly, or yearly.

There are a variety of high income ISA accounts available, so it makes sense to shop around for the one that best fits your income goals.

Monthly income ISA limits

The maximum amount you can put into a high income ISA is subject to the ISA allowance limit. You can put all or part of this amount into a high income stocks and shares ISA, all into a cash ISA, or some in a high income cash ISA and the remainder in a high income stocks and shares ISA.

Types of monthly income ISA

There is a wide range of high income ISAs available. You can select income funds covering all major geographical regions of the world. You can choose income funds with different investment risk profiles and growth objectives, including income equity funds, bond funds, property funds, specialist funds, and cash funds.

Benefits of a monthly income ISA

  • A high income cash ISA allows you to combine a straightforward, tax-free cash savings account with the benefit of regular income payments.
  • A high income stocks and shares ISA could be a good way to use your ISA allowance to maximise your potential for income from your investments, especially at this time of low interest rates. The money you invest in a high income ISA can offer the potential for tangible tax savings.
  • If you are saving with your retirement in mind, a high income investment ISA could be an option to consider. Many people use their yearly ISA allowance to invest in high income plans - the result of which can generate a tax-free income during retirement. In fact, recent data shows that savers are now putting more money into ISAs than into pension schemes.

Before you take out a ISA

There are a wide range of ISAs available, whether you decide to use your annual allowance for a cash ISA, stocks and shares ISA or decide to break it up to open one of each kind it is worth thoroughly shopping around before hand, to make sure you find the product that suits your specific needs best. You can use the table on this page to compare a selection of ISAs from different providers.

ISA idea for tax free income

"Ready Made Investment Portfolio ISAs"

Ready made investment portfolios can be a great way to invest in a stocks and shares ISA.

They are ideal if you are new to investing or simply don't have time to choose your own investments.

See a selection of ready made investment portfolio ISA options to help you choose the best way to invest your ISA allowance.

Ready Made Investment ISAs »

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

​Best Investment Trusts - 5 Top Picks For Your ISA

21st January 2021

Considering your 2021 ISA Options? We look at investment trusts worth a closer look and our 5 top picks for consideration for your stocks and shares ISA.

Newsletter Signup

Sign up to our Newsletter to get exclusive news and offers direct to your inbox.

About us

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.

About us

4.74 Average

23 Reviews

Jen

I found the way the different options are presented very clear - much more useful than some other comparison sites. I sent it to my daughter as well.

Paul

Very informative, find myself a good ISA account with best return in terms of interest.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Rob Holden

The website was very useful and informative.

Andrew Johnson

ISA can be confusing at first and this site includes a useful and helpful introduction into the world of ISAs

Crowd2Fund

Excellent website - clear and helpful information about different products - and a trustworthy partner.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Steve

Really simple to use and all the information was clear with lots of products available. The interest calculator was really handy too. Have bookmarked and will definitely use again.

Hannah Gordon

This was a really user-friendly site, and was very helpful when it came to comparing accounts and choosing my 2016 ISA.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Anonymous

If you wish to invest in an ISA this site has it all. A super comprehensive range of simply explained products from all the major companies.

Cristina Iacob

Very knowledgeble company with an extensive range of services, a great website with loads of useful information.

Anonymous

Nice graphics and easy to navigate

Dr Alan Rogan BSc PhD FCIOB FCABE Eur Ing

Good advice and professional approach

Razvan

Very helpful for getting my annual ISA

Jonny Doulton

Clear, concise and very professional outfit with an excellent choice of market leading deals.

Paul Tissington

ISA.co.uk not only helped narrow down my choices for a Junior ISA but also provided additional practical information that helped demystify the whole process.

Sunil Karadia

Just the site I needed, I have been looking for a suitable ISA for a while, but as there are so many to choose from, find it difficult to find the right one for me.

James Weatheritt

I found the information on ISA.co.uk very helpful and easy to understand. The site is easy to navigate and find what you're looking for.

Lisa Holden

I found ISA.co.uk very insightful and easy to navigate through. The content was useful and helped me make my ISA decision.

Neta Pourhosseini

I thought the information provided was easy to understand and very informative, I would recommend to friends for deffinite.