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22nd
Sep 2020
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Investment ISA for Beginners

Investment ISA for Beginners

The world of investments can be a bit overwhelming, especially for a first-time investor. So – to make your first dive into investing your hard-earned cash that little bit easier, we’ve put together a beginners guide for investment ISAs, giving you all you need to know. 

When you’re looking to open an Investment ISA, there is quite a lot of different options out there – it can be a bit much to get through when you’re a first-time investor.

What is an Investment ISA?

An Investment ISA is also known as a Stocks and Shares ISA. This is a type of ISA which allows your to invest your money into stocks, shares and funds without paying tax on the returns, due to it’s tax-free ISA wrapper.

You can invest up to £20,000 every tax year into any ISA account – so if you were lucky enough to have that much cash to spare, you could pop this all into one Investment ISA account, or spread it between different types of ISAs (but you can only open one Investment ISA per year).

Generally, stocks and shares ISAs tend to generate higher returns than Cash ISA accounts, so if you’re looking to grow your money this is probably the best choice.

Which one should I choose?

There are a considerable number of different kinds of investment ISAs, including:

For a first time investor, however, we would recommend steering clear of the more complicated and higher-risk form of investments such as High Income ISAs, Monthly Income ISAs, Share Dealing ISAs, Self Select ISAs, Gold ISAs, and Structured Growth ISAs.

Ideally, you would be wanting to choose an account which has a fund manager, so that you’re not picking and choosing investments yourself. This will incur a fee, but it means that you’re able to gain experience in investing, and then you might later venture out into a more independent investing position.

So, for a first time investor, we would lean more towards opening a simple Investment ISA, an Index Tracker ISA, a Fund Supermarket or – for a more socially or environmentally conscious investor – an Ethical ISA.

How many can I have?

You can theoretically have as many Investment ISAs as you want – as long as you do not open more than one per year.

The current limit on ISA accounts is legislated by the Government; you can only open one ISA each tax year which runs from April 6th to April 5th each year. So you can have as many Investmnt ISAs as you want – just as long as you only open one each tax year.

Where can I open an Investment ISA?

You can open an Invest ISA through the various platform websites.

Some might have the capability to open these online, via phone, in person at a brick-and-mortar base, and even in the case of some challenger banks, in a mobile app.

Our directory of each type of ISA page has a list of providers with their latest rates, so have a look through each of those pages to find the right one for you. 

Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Hargreaves Lansdown

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Choose from over 2,500 funds, shares, investment trusts and more to build your portfolio. UK and overseas shares. Corporate and government bonds. Exchange Traded Funds (ETFs). Ready-made portfolios to suit your goals and attitude to risk from £1,000. Expert research to help make your decisions. Investment trusts and much more. Capital at risk.Tax & ISA rules apply
  • Invest From: £25 pm or from £100 lump sum

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.

Stocks & Shares ISA

from Interactive Investor

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Access 40,000+ UK, US and international shares on 17 global exchanges. Choose from over 3,000 funds or select a ready made portfolio. Investment trusts, ETFs, Bonds & Gilts. Option to invest in 6 low cost funds selected by experts to get you started. Capital at risk. Tax & ISA rules apply
  • Invest From: £25 a month or any lump sum

Why we like it: An award-winning ISA that gives you complete control. The second largest platform in the UK with the widest choice of investment options in the market including funds, investment trusts, ETF’s and more. Strong ethical investment proposition with more than 140 investment options. Open online in less than 10 minutes. Access to expert independent ideas and analysis. Low cost fees and trading.

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.

Stocks & Shares ISA

from AJ Bell

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2000+ Funds
  • Invest From: £25 pm

Why we like it: It is simple to invest in a fund online. You will need to open an account first and then choose the fund you are interested in investing in. There are over 2,000 funds to choose from but to make it easier for you AJ Bell have created their favourite funds list which is their pick of the best funds. 

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

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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