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Investment ISAs /

High Income ISAs

Compare High Income ISA Deals

"If you want to achieve maximum income from your ISA allowance, a high income ISA can offer a convenient and tax-efficient way to save."

Investment Fund ISAs

High Income

from Artemis

Income Yield 5.29% pa - Interest Payable Monthly*

Why we like it: If you are looking for a high income yield and prepared to accept higher volatility then this fund may fit the bill. 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 the Hargreaves Lansdown investment platform.

*Distribution yield as at 30/4/2020

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.

Listed Equity Income

from AVIVA Investors

Income Yield 4.79% pa - Income Paid Bi-annually*

Why we like it: Getting paid a regular income is a priority for many investors. Whether you're in retirement, or want to boost your existing income, an equity income fund could be right for you. Even if you do not need income now, you can opt to reinvest it to boost capital growth. An emphasis on dividends and dividend growth makes this fund a more traditional UK equity income fund, in our view, so it could help form the foundation of an income portfolio.This fund is available via the Hargreaves Lansdown investment platform.

*Historic yield correct as at 31/5/2020

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.

Multi Manager High Income

from Hargreaves Lansdown

Income Yield 5.03% 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.

*Correct as at 30/4/2020

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.

Ethical Trust Income

from Legal & General

Income Yield 3.90% pa - Interest Paid Bi-annually*

Why we like it: A low cost ethical fund (0.25% pa ongoing charge) with the objective of the Fund is to provide growth by tracking the performance of the FTSE 350 Index (the “Index”), excluding shares of companies whose business does not meet a range of ethical and environmental guidelines (“ethical screening methodology”) determined by an external agency chosen by the Manager. This fund is available through the Hargreaves Lansdown Platform.

*Historic yield correct as at 22/5/2020

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.

Asian Income

from Jupiter

Income Yield 3.70% pa - Income Paid Quarterly*

Why we like it: If you are looking to access Asia’s exciting growth potential along with a regular income this fund may be for you. Focuses on larger, dividend-paying companies in developed Asian markets, including Hong Kong, Singapore and Australia. Invests in a small number of companies so each can contribute a lot to performance, which can increase risk. The fund aims to pay an attractive income and grow your investment. A focus on companies that tend to be more stable could help the fund fall to a lesser extent than some others when markets are weak. Jupiter has grown to be one of the UK’s most successful and respected investment management groups. This fund is available via the Hargreaves Lansdown investment platform.

*Correct as at 22/5/2020

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 3.12% 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 the Fidelity investment platform.

Special offer:

Invest and get £25 cashback » 

Build your savings with an ISA, SIPP or Investment Account and receive £25. Exclusions,  T&Cs apply.

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.

Global Equity Income

from JP Morgan

Income Yield 2.70% pa - Income Paid Quarterly*

Why we like it: JP Morgan Asset management is one of the worlds largest and best known brands in investment management. The aim of this fund is to achieve high and rising income by investing globally primarily in equities in any economic sector whilst participating in long term capital growth. This fund is available via the Hargreaves Lansdown investment platform.

*Correct as at 22/5/2020

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.

Equity

from Fundsmith

Income Yield 1.63% pa - Income Paid Bi-annually*

Why we like it: Suitable for the long term investor the fund manager Terry Smith focuses on a small number of high quality, resilient, global growth companies (Between 20 and 30 stocks)  that are good value with the intention of holding the shares for a long time. Companies held include Microsoft, Paypal and Estee Lauder. This fund is available through the Fidelity Platform.

*Historic yield as at 30 April 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.

Investment Income Plan ISAs

UK Quarterly Contingent Income Plan

from MB

Allow ISA Transfers
Annual Income Up to 5.00%
  • Counterparty: Barclays Bank plc
  • Term: Up to 10 years

Important: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. 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.

  • Potential quarterly income: 1.25% (equivalent to 5.0% annually)
  • Income paid even if FTSE 100 falls by 25%
  • Potential to kick out quarterly from year 2 onwards
  • Available for ISA, ISA transfer and direct investment
  • Capital is at risk if the FTSE 100 Index has fallen by more than 35% at the end of the plan, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £5,000
  • If you withdraw your money early you may get back less than you originally invested
  • An arrangement fee applies to this plan

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. 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.

UK Conditional Income Kick Out Plan

from Walker Crips

Allow ISA Transfers
Annual Income Up to 4.60%
  • Counterparty: Credit Suisse AG
  • Term: Up to 8 Years

Important: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. 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.

  • Potential quarterly income: 1.15% (equivalent to 4.6% annually)
  • Income paid even if FTSE 100 falls by 25%
  • Potential to kick out quarterly from year 2 onwards
  • Available for ISA, ISA transfers and direct investments
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, 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
  • If you withdraw your money during the plan you may get back less than you originally invested

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. 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.

What is a High 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.

High 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 high 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 high 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.

Drawbacks of a high income ISA

  • A high income ISA may be less suitable for you if you are saving for a short-term goal. Because the income on your ISA pays out at regular intervals - for example, once a year - you may miss out on the benefits of this if you withdraw earlier. To avoid this, choose an income ISA with a more frequent income payment scheme.

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.

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:

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Fixed Rate & Instant Access ISAs:

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Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

Four Ethical Junior ISAs to Consider for 2020/2021

26th September 2020

If you want to open a Junior ISA but want to make sure that the ISA itself is invested in line with you, or your child’s values, then you’ll want to consider opening an Ethical Junior ISA. But what exactly is an Ethical Junior ISA – and which ones should you be looking at? 

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