ISA Providers
Whether you’ve have been investing in ISAs for a number or years or you are thinking about taking out your first one, there are great ISA options available for everyone.
Check our tables for a comparison of ISA providers.
What are my Options?
There are three types of ISA which you’re able to split your annual allowance between. Cash, Stocks and Shares and Innovative Finance.
Cash ISA
Features:
- You can be paid a stable rate of interest. Fixed Cash ISAs tend to have the highest rates
- A Fixed Rate ISA would provide you with a guaranteed amount, meaning you will know what your end total will be. However, you are normally required to tie up your money for a period of time
- If you need flexible access to your account then Variable Cash ISAs are a good call as they are more likely to allow you 24/7 access to your money
What to Consider when choosing a Cash ISA provider?
- Whether the ISA is flexible or fixed rate, this will determine the rate of interest you receive
- If you are likely to transfer in the future, fixed rate ISAs tend to charge a penalty whereas variable ISAs tend to be more flexible about transfers
- Look for accounts with the highest rate of interest or switching deals
Make sure the account you have chosen accepts transfers in, if you’re planning to switch
Stocks and Shares ISA
A Stocks & Shares ISA is a tax-efficient and flexible way to invest in the market.
Features:
- This is a good way to protect your investments as anything you place into the ISA or earn in profit will be sheltered from capital gains tax and any further income tax
- An option to put away a little money each month or invest some spare cash. You could possibly receive a higher return on your savings when compared with a standard ISA
- Many accounts now offering managed portfolios for you, it is now easy for people to begin investing as no experience is required. This also works for very busy people
- It’s always worth remembering however, that there is an element of risk involved and you could end up with less than you originally invested. Investment ISAs are viewed as a long term investment, usually for a minimum of 5 years.
What to Consider when Choosing a Stocks and Shares Provider?
- Assess the level of risk you’re willing to take, most providers can filter assets depending on the level of risk you’re willing to take or even provide you with a ready-made portfolio
- Some providers hold a limited amount of carefully selected options to invest in whereas others have a much larger range of funds. Work out which is right for you
- Be careful of management charges and account fees. All investment ISAs have some form of charge, whether that’s a trading fee or an account management fee
Which ISA is Right for You?
It entirely depends on your savings goal and the amount or risk you’re willing to take. It’s generally advised that if you have debts, don’t have any other form of savings or will need to withdraw your cash in an emergency then you don’t choose to invest as your capital is at risk. It’s also difficult to withdraw your money quickly, even transferring can take 30 days or more.
If you do have some spare income, however, investing is a good way to see high returns on your money, as long as you are aware of the risks.
As another option, with certain types of Cash ISAs, you have instant access to your money, which makes it a flexible way to plan your finances. Alternatively, fixed rate ISAs are a good way to see guaranteed returns on your capital, if you can tie up your money for a year or more.
