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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:

  1. Quarterly
  2. six-monthly
  3. 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. 

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.

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