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21st
Aug 2020
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What is the best high income ISA?

What is the best high income ISA?

If you are looking to open an ISA but would like your returns to be paid in the form of “income”, then a High Income ISA may be an option for you. But with so many different investment products on the market, it can be difficult to identify what investment is right for you. To help you with your search, we’ve put together our top picks for high income ISAs to help you make the most of your money. 

What is a high income ISA?

A high income ISA is a way of utilising your ISA allowance that aims to provide you with a high regular tax-efficient payment on your investment or savings, which can provide your with a regular “income”. 

Depending on the type of account you go with, and the provider, your income may be paid:

  • 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 – there are lots of investment funds to choose from - we’ve put together a list of our top five picks to consider.

Our Top Picks

Artemis High Income ISA

While this fund has a slightly higher risk attached, the experienced fund manager focuses on higher yield bonds and shares with a flexible approach towards finding the best income opportunities. This fund is available via Hargreaves Lansdown and boasts a 5.29% per annum income yield (as of 30/4/2020) which is paid monthly.

Aviva Listed Equity Income ISA

Like many other providers, this fund aims to put high income for fund holders as their highest priority. There is a strong emphasis on dividends (and the growth of dividends) which makes this one of the more traditional British options. It has a income yield of 4.79% per annum (as of 31/5/2020) which is paid bi-annually.

Hargreaves Lansdown Multi Manager High Income ISA

This fund aims to provide holders with a high income yield by blending together different kinds of funds and moving in between different areas of the market, offering a good amount of variety as attractive opportunities emerge in different areas. This offers a 5.03% income yield per annum (accurate as 30/4/2020) which is payable monthly. 

Legal and General Ethical Trust Income

With a very attractive low cost charge (0.25%), this fund aims to grow by tracking the performance of the FTSE 350 Index and focussing on companies within that range which hold themselves to a high ethical standard on a variety of issues. This can help investors keen to make sure they’re putting their money where their mouth is. With a 3.09% per annum income yield (as of 22/5/2020) which is paid bi-annually.

Fidelity Moneybuilder Income

This is a fairly conservative fund when it comes to bond investing; they focus on companies which are in good financial health, ensuring they generate enough capital to keep bondholders paid. They avoid taking excessive risks whilst also diversifying their portfolio, so if you are more risk-averse then this is the fund for you. They offer a 3.12% per annum income yield (as at 19/08/2020) which would be paid monthly – it is only available via the Fidelity investment platform. 

Read more about High Income ISAs. 

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.

Selected ISAs

MoneyBuilder With Profits Fund

from Scottish Friendly

ISA Option
Allows ISA Transfers
Regular Savings
  • Term: 10 years+
  • Fund Choice: Unitised With Profits Fund
  • Invest From: £10 pm
  • Investment Options: Your money will be invested in a My MoneyBuilder policy within a Scottish Friendly ISA which will invest in the Scottish Friendly Unitised With-Profits fund which may include stock market, property, cash and bond assets.

Why we like it: Low monthly minimum contribution of £10pm

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.

Important Information: You should consider this as an investment for a period of at least five years and ideally 10. The value of your investments can fall as well as rise and you could get back less than you have paid in. If you cash in the plan before the end of 5 years there will be a £50 deduction from your cash-in value.

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:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

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