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Sep 2020
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Investment ISAs: What are my options?

Investment ISAs: What are my options?

When looking to open an Investment ISA, there are a lot of different options that you have to choose from. Picking the right account for you can make sure that you get the best returns in the best way for your situation, whilst taking advantage of the tax-free ISA wrapper offered by Stocks and Shares ISAs. But what are your options? We’ve broken down all of the different types of Investment ISAs here, so that you can make an informed decision. 

What is an Investment ISA?

An Investment ISA, also known as a Stocks and Shares ISA, allows you to invest your money without paying tax on the returns.

The government cap on an ISA means that with an Investment ISA, you can invest up to £20,000 each tax year into any ISA account.

If you’re looking to grow your money, you’ll want to be thinking about opening a Stocks and Shares ISA, as they tend to generate higher returns than other ISA accounts, such as Cash ISAs.

There are a lot of different types of Investment ISAs available, including:

Types of Investment ISAs

Index Tracker ISAs

An Index Tracker ISA is a type of Investment ISA which looks to replicate stock market trends by tracking performance closely. A fund will generally buy all the different company shares within an index, as opposed to an actively managed fund where a fund manager will attempt to do better than the index itself.

Fund Supermarket ISAs

A Fund Supermarket ISA is an ISA which allows you to invest in a wide variety of different investments in one place. The main highlight of this type of ISA is the variety of options for your income and growth.

High Income ISAs

A High Income ISA largely does what it says on the tin: it is an ISA where the investments you make are intentionally designed to garner the highest possible returns, which are then paid in regular intervals, e.g. quarterly, bi-monthly, monthly. These are higher risk but do generate both regular returns and ideally high returns if the stock performs well.

Ethical ISAs

An Ethical ISA allows you to put your money where your mouth is when it comes to any strong convictions you may have regarding certain issues. This is done by only including companies in the investment Index which adhere to certain specific criteria, e.g. environmental practices etc. Some examples of industries or links which would be avoided by this type of ISA include: tobacco, alcohol, pornography, gambling, fur trades, and armaments.

ETF ISAs

An ETF ISA stands for an exchange-traded fund; these issues shares which are then traded on a stock exchange. One of the upsides of this type of Investment ISA is that it offers a very wide range of types of assets and opens up access to specific markets, sectors and strategies which may not be accessible with other forms of Investment ISAs.

Gold ISAs

A Gold ISA is an excellent option for an investor who is looking to diversify their investments. If you are interested in investing beyond the traditional stocks and bonds options, you can do so with a Gold ISA which enables you to invest in more non-traditional assets. It is important to remember with this type of ISA that a long-term approach is needed in order to see good returns.

Monthly Income ISAs

As the name would suggest, this is a type of ISA which aims to gain returns which allows investors to be paid in regular intervals (quarterly, six-monthly or annually) in the form of ‘income’. These aim to offer the highest possible income for investors, so for those looking for diversity and gain regular returns then this is definitely one to look at.

Share Dealing ISAs

A Share Dealing ISA is another option if you are looking to diversity your investment portfolio by putting your money into different stocks, shares and other investment vehicles. Examples of the types of investment vehicles you could choose with a Share Dealing ISA include: stocks, shares, gilts, equities, investment funds, investment trusts and exchange traded funds.

Self Select ISAs

This is an ISA for those who have experience in investing and are looking to have more of an active role in their investments. With this ISA, any decisions about investments are down to the investor themselves. There are no fund managers for these accounts, so the investor will do the work of a fund manager in selecting and actively investing in individual funds and stocks.

Structured Growth ISAs

A structured growth ISA is a specific type of growth product where, instead of buying individual stocks and shares, or having a fund manager do this for you, your investment is linked to the stock market as a whole. In the UK, this will usually be the FTSE 100 index. Your investment will then pay out depending on whether the index as a whole moves up or down.

Read more about investment ISAs here. 

Share Dealing ISAs

Share Dealing ISA

from Hargreaves Lansdown

  • Trade From (frequent trader rate): £5.95 per trade - 20 trades + pm
  • Trade From (standard trader rate): £11.95 per trade

Why we like it: Online share dealing at £11.95 per deal, or as low as £5.95 per deal for active traders. For regular savings, pay just £1.50 per deal. You can also trade shares by phone or post.

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.

Investment Fund ISAs

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.

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

What is a Peer to Peer ISA?

18th September 2020

A Peer to Peer ISA sounds complicated – but to the experienced and keen investor, it can be a great way to diversify your portfolio, try a new, innovative form of investing, while benefiting from the tax benefits associated with an ISA account. But what exactly is a Peer to Peer ISA, and which ones should you be looking at? 

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