5 ISA Ideas To Invest £100 PM

Read our top 5 ideas to invest £100 a month.

Investment ISAs put your capital at risk & you may get back less than you originally invested

Stocks & Shares ISA

from Interactive Investor

Regular Savings
Allows ISA Transfers
  • Fund Choice: Access 40,000+ UK, US and international shares on 17 global exchanges. Choose from over 3,000 funds
  • Invest From: £25 pm

Why we like it: An award-winning ISA that gives you complete control. The second largest platform in the UK with the widest choice of investment options in the market including funds, investment trusts, ETF’s and more. Open online in less than 10 minutes. Access to expert independent ideas and analysis. Low cost fees and trading. Capital at risk.

Stocks & Shares ISA

from Shepherds

Regular Savings
Allows ISA Transfers
  • Fund Choice: Invest in the Shepherds With Profits Fund which offers medium to low risk investing, with the aim of growing your money in a smooth manner over the long term
  • Invest From: £30 pm

Why we like it: You don’t have to make any tricky investment decisions; your money will be invested in Shepherds With Profits Fund, and the bonuses you could receive will depend on the future performance of the fund. To try to achieve higher returns for you, your money is invested in a variety of assets, the majority of which consist of stocks and shares, but also property, bonds and cash. While returns are not guaranteed in stocks and shares investments and the value can go down as well as up, Shepherds apply a process known as ‘smoothing’ that attempts to even out fluctuations in the value and aims to keep a consistent level of bonus payments. Capital at risk.

Stocks & Shares ISA

from Best Invest

ISA Option
Regular Savings
Allows ISA Transfers
  • Fund Choice: Over 2,500 funds, UK shares, investment trusts and ETFs or choose Ready Made & Managed Portfolios
  • Invest From: No minimum

Why we like it: Pick your own investments or choose a Ready-made Portfolio. Some of the lowest investment ISA account fees available. Tiered service fees of 0.2% or less a year, no set-up fees and share dealing for just £4.95 per trade. You don’t pay anything to open your ISA or buy funds, and share dealing costs just £4.95 per trade. Voted Best ISA Provider at the City of London Wealth Management Awards 2020. Capital at risk.

Stocks & Shares ISA

from InvestEngine

Regular Savings
Allows ISA Transfers
  • Fund Choice: Offering commission-free DIY investing or low-cost, professionally managed income or growth portfolios built for you
  • Invest From: £100
See Deal Transfer to InvestEngine by 31/05/24 and receive a bonus of up to £2,500. Open to new or existing customers. (Capital at risk, Ts&Cs apply)

Why we like it: Make the most of the world’s best ETFs commission free. Build your own portfolio commission free or leave it to our experts for just 0.25%. Zero‑ISA fees. Choice of 600+ ETFs. Low cost, diversified, index-tracking of stock markets, bonds and commodities. DIY or Managed. Capital at Risk

Stocks & Shares ISA

from AJ Bell

Regular Savings
Allows ISA Transfers
  • Fund Choice: Invest in over 2,000 funds, shares and more across 25 markets
  • Invest From: £25 pm

Why we like it: Invest in over 2,000 funds, shares and more across 25 markets. Invest from £25 per month. Which? Recommended Provider for Investment Platforms 2019–2023. Low-cost online dealing from £3.50.  Open your account in minutes from app or website, manage your portfolio on the move. FSCS protected. Capital at risk

Investing £100 pm In A Stocks & Shares ISA

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, check the main page to see the current ISA maximum allowance.

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:

      1. Invest your full ISA allowance in a stocks and shares ISA.
      2. 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:

      1. Your debts are under control – you’ve either paid them off or have affordable arrangements in place to do so.
      2. 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 10 things to consider when choosing a stocks and shares ISA

  1. 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.
  2. 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.
  3. 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).
  4. 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.
  5. 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.
  6. 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.
  7. You will not be able to transfer any existing non-ISA shares, or shares you’ve inherited, into a stocks and shares ISA.
  8. 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.
  9. 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.

Frequently Asked Questions

How do I open an ETF ISA?

You can open an ETF ISA online, via your mobile app, on the phone, or via a posted form. You can contribute with a debit card, or via Direct Debit. Once you’ve committed your funds, you can then purchase your ETF investments.

How do I open a Stocks and Shares ISA?

You can open a Stocks and Shares ISA online or via the mobile app of the provider that you choose. You can also open one over the telephone or with a posted application form.

How much money can I put in a Self Select ISA?

The annual ISA allowance is £20,000. This is the amount you can contribute to Stocks and Shares ISAs and Cash ISAs combined.

How much money can I put in a Stocks and Shares ISA?

You can add £20,000 for the current tax year, and this amount refreshes each tax year.

Is an Investment ISA platform a good idea?

An Investment ISA is a good idea as long as you understand the risks involved and you’re comfortable making your own investment decisions. You could lose money on your investments, but they could also significantly outperform other ISA investment options.