5 ISA Ideas To Invest £20000

Read our top 5 ideas to invest £20,000

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
See Deal The best things in life are free trades. Open a new ISA and get £50 free trades. Offer ends 5 April. Capital at risk. Terms Apply

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 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 Top-up or transfer to InvestEngine by 30/04/24 and receive a bonus of up to £2,500 (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 Nutmeg

ISA Option
Allows ISA Transfers
  • Fund Choice: Nutmeg offer 5 diversified portfolios with ETFs, using technology to keep charges low
  • Invest From: Min. £500 single

Why we like it: Get an intelligent stocks & shares ISA portfolio – Choose a portfolio that’s fully managed by our expert team or a fixed allocation portfolio. No tie-ins, no set-up fees, no exit charges. Easy, online set up in minutes. Start with as little as £500. Portfolio management fees of 0.45%-0.75% up to £100k. 0.25%-0.35% beyond £100k. There are also underlying investment charges, see our fees page. Plus, live chat, amazing customer support and brilliant investor tools and guides. Authorised and regulated by the FCA. Capital at risk. Tax treatment depends on your individual circumstances and may change in the future. Capital at risk. Approved by Nutmeg 24/02/2023

Stocks & Shares ISA

from Moneybox

ISA Option
Allows ISA Transfers
  • Fund Choice: Choose from a range of 36 funds and ETFs and 20 US stocks. Select one of three simple starting options with a range of tracker funds or build your own investment portfolio by customising your investment options
  • Invest From: £1

Why we like it: Choose from a range of 36 funds and ETFs and 20 US stocks to invest with Moneybox. Earn 3.8% AER Variable on any uninvested cash you hold. There are additional fees charged directly by the fund provider. Please check the key investor information document (KIID) for a particular fund for more information. Keep things simple and get started with one of our three starting options: Cautious, Balanced or Adventurous – and customise your investments to align with your values. Open with as little as £1. When investing, your capital is at risk

Stocks & Shares ISA

from Wealthify

Regular Savings
Allows ISA Transfers
  • Fund Choice: 10 managed portfolios to choose from. Choose your risk profile and have an investment Plan built and managed for you
  • Invest From: £1

Why we like it: Choose your level of risk from cautious to adventurous and have a plan expertly created and managed for you. Create multiple Plans – including Ethical Plans – with different risk levels. Invest as little or much as you like, add regular payments and top up whenever you like. Withdraw money or transfer out without notice or penalty fees. Wealthify app lets you check how your Plan is performing, manage your transactions and provide investment news and insights. Simple annual management charge of 0.6%

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
See Deal Win one of ten £1,000 John Lewis vouchers when you open and deposit £1,000 into an AJ Bell SIPP, Stocks and Shares ISA or Stocks and Shares LISA account before 30th April 2024. T&C's apply

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

Stocks & Shares ISA

from Freetrade

ISA Option
Allows ISA Transfers
  • Fund Choice: Invest in 6,100+ US, UK & European stocks & ETFs commission-free
  • Invest From: £2
See Deal Get a free share worth between £100 and £2,100 when you open & top up or transfer an ISA on or before 5 April 2024. Capital at risk. ISA eligibility, tax rules & T&Cs apply. Free share value weighted on net funding

Why we like it: Commission-free investing: No fees for buying or selling stocks (other charges may apply). Support: Fast and friendly customer support. A wide range of investments: 6,100+ US, UK, and European stocks, ETFs, and investment trusts. Low monthly fees: From £4.99/month. Capital at risk. Other charges may apply

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 Hargreaves Lansdown

Regular Savings
Allows ISA Transfers
  • Fund Choice: Choose from over 3,000 funds, shares, investment trusts and more to build your portfolio
  • Invest From: £25 pm or £100 lump sum

Why we like it: Hargreaves Lansdown are the UK’s no. 1 investment platform for private investors – kickstart your investing with their award-winning ISA. Choose your own investments with expert research and ideas to help you, or simply pick a ready-made portfolio. Manage via website, app or phone. Capital at risk.

Investment ISA

from Barclays

Regular Savings
Allows ISA Transfers
  • Fund Choice: Invest in over 2,000 funds, plus Exchange Traded Funds, Investment Trusts, UK & International shares and more. Five Ready-made Investment funds if you’re not sure where to invest. Capital at risk.
  • Invest From: £50

My Money Builder Select ISA

from Scottish Friendly

ISA Option
Regular Savings
Allows ISA Transfers
  • Fund Choice: Invested in a single fund - the Unitised With-Profits fund. A mixed managed fund from Scottish Friendly where premiums are pooled with those of other clients and returns are linked to the performance of the underlying assets within the fund
  • Invest From: £10 pm o r £100 single

Why we like it: Invest from only £10 a month, lump sums from just £100 or a combination of both using your tax-free Investment ISA allowance. You can stop, restart, raise or lower your payments or your investments and cash in whenever you want. When you set up a My MoneyBuilder Select (ISA), your money will be invested in a single fund – the Unitised With-Profits fund. A mixed managed fund from Scottish Friendly where premiums are pooled with those of other clients and returns are linked to the performance of the underlying assets within the fund. Remember the value of investments can go down as well as up, and you could get back less than you’ve paid in. If you cash in before the end of 5 years there will be a £50 deduction from your cash-in value.

Stocks & Shares ISA

from Moneyfarm

Regular Savings
Allows ISA Transfers
  • Fund Choice: Choose your risk profile and have it matched to an investment portfolio expertly built and managed.
  • Invest From: £1,500

Why we like it: Answer questions about your goals, financial situation and attitude to risk, and Moneyfarm will recommend the right ISA portfolio for you, built and managed by experts to help your money grow. You’ll always be invested in a portfolio that’s suitable for you, and you can manage this through the Advice Centre. See what you’re invested in, how you’re performing and how much you’re paying anywhere and any time with the Moneyfarm app. Add money to your ISA by setting up a direct debit, investing a lump-sum, or by transferring old ISAs for free. Capital at risk.

Share Dealing ISA

from IG

Allows ISA Transfers
  • Trade From (frequent trader rate): £3.00
  • Trade From (standard trader rate): £8.00

Good to know: Pay zero commission on US share trades, and just £3 on UK share trades, when you trade three or more times a month with IG. No admin or transfer fees. Custody fee of £24 per quarter, charged if you hold share dealing or ISA assets at the end of the quarter. Capital at risk. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider

Stocks & Shares ISA

from Fidelity

Regular Savings
Allows ISA Transfers
  • Fund Choice: Choose from over 4,000 investment options, including one of the widest fund ranges in the UK. With online guidance tools and expert fund ideas to help you choose
  • Invest From: £25 pm

Why we like it: This award-winning ISA has an extensive range of investment options, including thousands of funds and shares, plus a guidance service to help you find investment ideas. There is a low service fee (typically 0.35%), easy online application process and apps to manage your money on the move. Additional charges apply depending on your choice of investments. Plus, everything is backed by Fidelity’s 50 years of investment experience. Boring Money Best Buy ISA 2023

Stocks & Shares ISA

from TILLIT

  • Fund Choice: TILLIT filter the market and select the best-in-class active and passive funds across asset classes, regions and styles

Why we like it: Let Tillett filter the market for you. From well-known classics to trailblazers and wildcards. No one needs 5,000 funds. Get breadth and variety, without the choice paralysis

Stocks & Shares ISA

from ChipX

ISA Option
Allows ISA Transfers
  • Fund Choice: Save and invest across investment funds, cash savings, and real assets
  • Invest From: No minimum

Why we like it: Chip is an award-winning wealth management app designed for our generation. The UK’s only app that enables you to invest in unique and iconic real assets, as well as investment funds and savings accounts. Save and invest your way, or use our clever tech to build wealth automatically. Our range of diversified investment funds are managed by some of the world’s biggest asset managers, like BlackRock. Invest in things that matter to you, like Clean Energy and Healthcare Innovation, or explore funds that match a wide range of risk appetites, from Cautious to Adventurous. Or, if you want to build up your cash savings, we work with UK partner banks to bring you free FSCS protected savings accounts with competitive interest rates. Chip does not provide tax advice. Tax treatment depends on individual circumstances and may be subject to change in the future When investing, your capital is at risk

Investing £20,000 into 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 ten 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

Can I lose money in an Investment ISA platform?

Yes, your underlying investments can lose value, particularly in periods of short-term volatility.

Can I transfer my Cash ISA into a Stocks and Shares ISA?

Yes, you can transfer from your Cash ISA to a Stocks and Shares ISA at any time. However, do check you won’t lose out by transferring, as some Fixed Rate Cash ISAs may charge a fee or void your interest if you surrender your policy before the fixed term has ended

Do I pay tax when withdrawing from an Investment ISA?

There is never any tax to pay or declare when withdrawing money from an ISA.

Is now a good time to invest in an Investment ISA platform?

Yes. There is never really a good or bad time to invest in stocks and shares within an ISA, but generally, the longer you invest for the better.