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Fund Supermarket ISAs /

Monthly Income Fund ISAs

Compare ISAs for regular income:
Investment Fund ISAs

High Income Trust ISA

from Legal & General

Income Yield 5.30% 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.

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.

*Underlying yield as at June 2019

Hargreaves Multi Manager High Income

from Hargreaves Lansdown

Income Yield 4.36% 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.

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.

Managed Monthly Income Trust ISA

from Legal & General

Income Yield 2.00% 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. 

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.

*Underlying yield as at June 2019

Monthly Investing

Many ISA providers allow you to invest monthly. Nutmeg offer a simple ISA plan where you can set up different pots for different savings objectives e.g. house fund; children's saving fund where you can decide on the different risk levels you are prepared to take. For more information on how you can invest tax efficiently from £100 pm click here »

What is a monthly income fund ISA?

Monthly fund income ISAs offer a way to take a monthly income from your investments in a tax-efficient manner. They let you use your annual ISA allowance to invest in stocks and shares without paying tax on the return you receive.

The fund manager will invest your money with the goal of providing a regular income, rather than necessarily aiming for the highest possibly growth. This makes this kind of investment product popular with those who wish to use their savings to generate regular, dependable returns, such as retirees.

Monthly income fund ISAs usually use a diversified approach to investing, meaning some of your money may be in cash and some in stocks and shares. As the goal is to provide a regular income, fund managers will normally aim for relatively low risk investments.

However, as with any investment in stocks and shares, there is the potential for the value of the assets to go down as well as up which could harm your potential income.

Benefits of a monthly income fund ISA

By investing in a monthly income fund ISA, you can:

  • Use your saving to generate a regular, tax-efficient income
  • Limit your risk – fund managers for monthly income ISAs generally invest in dependable shares from companies with a good track record
  • Choose from a wide range of products to match the level of risk and return you are comfortable with

Alternatives to monthly income fund ISAs

If you are looking to see larger returns or want to put your savings into a longer term investment, there are various other investment ISAs you can choose from.

Popular investment ISAs include:

Growth ISAs – If you want to see bigger returns and don’t mind waiting longer to see them, a growth ISA may be a good choice. These typically have terms of 3-6 years and you usually won’t get anything back until the loan term ends.

Structured ISAs – Instead of investing in individual stocks and shares, a structured ISA is linked to the overall performance of an index such as the FTSE 100. This limits your risk but can result in lower returns than those provided by well-chosen stocks and shares.

Kick out ISAs – A kick out feature means your investment ISA has a chance to mature early if certain conditions are met. This can allow investors to hedge their bets as there are more chances for the fund to pay a return throughout its lifetime with the payouts generally getting larger the longer the fund runs.

ISA idea for tax free income

Best ISA Ideas For Growth


The opportunity for a high fixed tax free monthly income.

Maximise your 2019-20 allowance!

Invest from £3,000

Click here for more details...»

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.

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Stocks and Shares ISAs

Latest News

How much can I pay into an ISA?

21st March 2019

Each tax year, there's a limit set by the government to the amount you can save and invest in ISAs: your “annual ISA allowance”. The allowances are intended to reward savers and encourage us to invest more to support our future retirements, without creating a tax haven that can be taken advantage of by very wealthy individuals who just want to avoid paying tax.

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