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23rd
Oct 2020
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What ISA Options Do I Have?

What ISA Options Do I Have?

There is a lot of variety when it comes to the types of ISAs account; it can be overwhelming when looking to choose which one you think is right for you. Cash ISAs, Investment ISAs, Lifetime ISAs, Peer to Peer ISAs, Junior ISAs...with such a wealth of choice, which ISA is right for you? We've broken down all of your ISA options to give you the information you need to know. 

There are lots of different types of ISAs including:

Firstly, we’ll explain what each of these ISAs are, and how they can help you towards your savings goals. 

Then, in our second blog in this 'series', we’ll explain some of the ‘sub types’ of ISAs which fit under some of these ISA types which are more specific, so you can get a full picture of your options.

What's an ISA?

An ISA is a tax-efficient way for you to make your money work; by putting your money into an ISA tax-free wrapper, you will enjoy returns which are safe from the tax man.

For this tax year, you are able to put in a maximum of £20,000 into an ISA.

Cash ISA

A Cash ISA is a bit like a savings account, but with a better interest rate. A Cash ISA is an type of ISA where your money is kept in the ISA wrapper and gathers interest.

This interest is protected from the tax man because it is kept in the ISA wrapper; any returns you gain from the interest are not subject to capital gains tax or income tax.

Cash ISAs historically have quite low interest rates, so can sometimes be a bit unattractive to people looking to get a good return. However, for the right saver there are lots of pros to having a Cash ISA which should be considered. Read our blog “Is A Cash ISA Worthwhile?” here, so find out if it’s right for you. https://www.isa.co.uk/isa-blog/posts/2020/march/4/is-a-cash-isa-worthwhile-/

Investment ISA

An Investment ISA does essentially what it says on the tin: it is a way to invest while keeping your money within the tax free ISA wrapper. It can also be known as a Stocks and Shares ISA, which is a good way to explain how they work. These are generally interchangeable terms, though they have slightly different meanings:

“shares” can refer to owning part of one particular company (“I own shares in Unilever”)

“stocks” can refer to shares in a number of different companies (“I own stocks in the renewable energy industry”)

With an Investment ISA, you will gain returns on your investment which will be safe from the tax man. They tend to offer better return rates than Cash ISAs and allow you to invest easily and with access to specific types of investments, such as Ethical ISAs or Climate Change ISAs.

Lifetime ISA

A Lifetime ISA is an ISA with a very specific purpose - long term saving.

You can but in up to £4000 per tax year; this amount is subject to government legislation, and this is the allowance for 2020/2021. The catch with this account is that you can only access your money when you are either buying your first home, or you have reached the age of 55 and retiring.

The government will then give you a 'bonus' of 25% of what you have put into this account: which means you can get a boost of up to £1000 each year. This money can only be used to help you buy your first home or as long-term retirement savings. You can theoretically take this money out of these accounts, however you will lose the bonus and potentially be subject to penalties.

Peer to Peer ISA

A Peer to Peer ISA, otherwise known as Innovative ISAs, allow savers to lend their money to other borrowers directly - bypassing the middle-man and thus, benefiting from a better interest return.

This type of account is best suited to those who are experienced investors – and therefore, familiar with the process – and are comfortable with a slightly higher associated risk.

These accounts offer the potential for higher return rates, so are attractive for those who already know what they’re doing when it comes to investing.

Junior ISA

A Junior ISA, or JISA, is an ISA account which is set up on behalf of a child by a parent or guardian. Family, friends and parents can then put money into that ISA. This is an excellent way for parents, grandparents, friend etc. to put money aside into a specified account designed to help a child have a strong financial basis to start their adult life.

The child whose name is on the account will be able to manage the money when they turn 16 but will not be able to access the cash until they are 18.

These accounts are subject to an additional government legislation – you can put in a maximum of £9000 this tax year into a JISA account. 

Read more about Cash ISAs 

Read more about Investment ISAs

Read more about Lifetime ISAs

Read more about Peer to Peer ISAs

Read more about Junior ISAs

Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Fidelity

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,000+ Funds
  • Invest From: £50pm

Why we like it: Invest from as little as £50 a month or with a £1,000 lump sum. Investment choice from over 100 fund providers, giving you access to 2,000+ funds. One low-cost service fee of 0.35%*. Great service – from investment guidance on website through to UK-based phones team. PathFinder, Select 50, Investment Finder - investing tools for beginners to advanced investors. 24/7 access via online Account Management system.

* depending on how much you have invested

Special offer:

Invest and get £25 cashback » 

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

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.

Selected ISAs

Stocks & Shares ISA

from Legal & General

Allows ISA Transfers
Regular Savings
  • Fund Choice: Managed funds tailored for you or choose yourself from over 50 funds
  • Invest From: £20 per month or £100 single

Why we like it: Legal & General can help you save for a brighter future with their stocks and shares ISA. Choose from over 50 funds, including ready-made investment options that spread your money across different investments for you and sustainable funds that seek to make a positive difference without compromising financial returns. Please remember with investments, your capital is at risk, 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.

Important: 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 Fund Supermarket ISAs

Stocks & Shares ISA

from Hargreaves Lansdown

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,500+ Funds
  • Invest From: £25 pm

Why we like it: Choose your own funds or alternatively a ready made portfolio. Market-beating savings and discounts of up to 5.5%. No charge to buy and sell funds. Low, tiered annual charges for holding funds, with a maximum of just 0.45% per annum. Free fund updates and analysis from experienced research team. Invest with a financially secure, FTSE 100 company.

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.

Junior ISAs

Junior Stocks and Shares ISA

from Hargreaves Lansdown

Regular Savings
  • Investment Options: Invest from £25 per month or deposits of £100.

Why we like it: Invest for your child from £25 pm tax free. A wide range of top performing funds to choose from. The annual charge for holding investments in a Hargreaves Lansdown Junior ISA is never more than 0.45%. Your dealing and other charges will depend on the investments you choose.

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 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

Latest News

Our Top Picks for Technology Stocks and Shares ISAs

19th January 2021

The tech industry has been booming for the past fifteen years; and it seems to be a rollercoaster that only goes up. The tech bubble has yet to burst, with companies coming out with more and more technological developments and consumer demand is certainly not slowing down. So, for the tech-savvy investor who wants to put their pennies behind this strong growing industry, we’ve put together our top three picks for Technology Stocks and Shares ISAs. 

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