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31st
May 2017
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Investing For Income Ideas

Investing For Income Ideas

If you are looking to invest with the aim of generating a reliable income, you need to choose carefully where to put your money. 

Many finance companies offer specialist income plans designed to provide a regular monthly income, or longer term income boosts, so if this is your goal, it is well worth doing some research into the available options and see which best matches your income requirements.

Because ISAs allow you to earn interest tax-free, they are a popular choice with those looking to earn an income from their investments. The following are 5 of the top ISA income plans we have identified which offer good monthly returns for your investment.

1) Investec FTSE 100 Enhanced Income Plan

This plan offers a fixed monthly income for 5 years, giving 0.38% interest each month, equivalent to 4.56% gross per year. The minimum investment is £3,000 and the maximum is £20,000 for an ISA account or £1,000,000 for a non-ISA account.

At the end of the plan you will get your initial capital back, subject to the FTSE 100 index’s performance. With average longer term savings currently offering interest at around 2.20% fixed, a 4.56% per year fixed income could be a good investment, if you are willing to risk your capital.

Click here for more information about the Investec FTSE 100 Enhanced Income Plan »

2) Focus FTSE Monthly Income Plan

This plan can be used with direct investments and pension investments and is open to individuals, businesses, charities and trusts. It provides a fixed monthly income of 0.35% (equivalent to 4.20% annually).

The minimum investment is £5,000 and the maximum is £20,000 for ISA accounts, while there is no limit for direct investments. At the end of the plan, your capital will be returned unless the FTSE falls by over 40%. This, again, offers significantly better returns than current long term savings rates.

Click here for more information about the Focus FTSE Monthly Income Plan »

3) Investec Enhanced Kick Out Plan

Rather than offering a regular monthly income, this plan offers the potential for maturity at the end of each year of the plan, which can run for up to 6 years. The plan kicks out, offering a 10.25% return if the five-day average closing level of the FTSE 100 is higher than when the plan began.

The benefit of this plan is that it can provide a competitive return even when the FTSE stays relatively flat. The minimum investment is £3,000 and the maximum is £20,000 for an ISA investment or £1,000,000 for a non-ISA investment.

Click here for more information about the Investec enhanced Kick Out Plan »

4) Virgin Money Stocks and Shares ISAs

Virgin Money offer various stocks and shares ISAs for those looking to generate an income from their savings. These include:

Bond and Gilt Fund – a low risk fund invested in government-issued bonds and highly rated companies.

Bond, Gilt and UK Share Fund – splits your investment between UK shares and lower risk bonds from the government and highly rated companies.

Bond, Gilt, UK and Overseas Share Fund – spreads your investment across various asset types, including overseas shares to give your investment more diversity.

UK FTSE All-Share Fund – invests your capital into 600+ companies on the FTSE All-Share Index.

Global Share Fund – spreads your investment across shares in different countries and regions for a geographically diverse investment portfolio.

Click here for more information about the Virgin Money Stocks and Shares ISA »

5) Nutmeg ISAs

Nutmeg offer straightforward, flexible investment ISAs with a minimum investment of £500 and no minimum investment period, making them attractive for less experienced investors. Nutmeg provide diversified investment portfolios managed by an experienced team for a low fee of 0.25-0.75%.

You can set up a new ISA online in minutes and withdraw your money any time. You can also create separate investments at different risk levels, letting you plan for different income and savings goals.

Click here for more information about Nutmeg ISAs »

Compare investing for income products

Knowing which investment plan will best match your income goals can be tricky. While the five investment ideas shared in this article offer some of the best deals currently on the market, there are many other options you can also choose from. Take a look at the range of investment ISAs on our website for more ideas.

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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5 Considerations for Your Next Investment ISA

15th March 2021

You've decided to invest your savings into a Stocks and Shares ISA. You'll be using your tax-free ISA allowance for this year before the deadline, while also investing your money for your future. But what do you need to consider before opening an account? We've put together a list of our top five considerations for you to think about before you click "apply". 

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