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Monthly Income Fund ISAs

Compare ISAs for regular income:
Investment Fund ISAs

Moneybuilder Income

from Fidelity

Income Yield 2.89% pa - Income Paid Monthly*

Why we like it: A fund with a conservative approach to bond investing. The focus is on quality companies that are in good financial health and generate enough cash to keep paying bondholders. Aims to provide a relatively steady income and a small amount of growth, without taking excessive risks. It could help diversify a portfolio focused on shares, or be used as a way to limit volatility during tougher times for stock and bond markets. 

This fund is available via: Fidelity investment platform »

*Distribution Yield as at 30/11/2020

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.

Multi Manager High Income

from Hargreaves Lansdown

Income Yield 4.46% pa - Interest Payable Monthly*

Why we like it: The Hargreaves Multi Manager High Income fund aims to deliver a high monthly income to clients by blending different types of funds and moving between different areas of the market when more attractive opportunities emerge. HL also aim to grow this income payment over time and therefore may invest in higher risk smaller companies they believe offer great potential for long term capital growth.

This fund is available via: Hargreaves Lansdown investment platform »

*Historic yield as at 31/12/2020

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.

Monthly Distribution

from Artemis

Income Yield 3.70% pa - Interest Payable Monthly*

Why we like it: If you are looking for a high income yield this fund is suitable for long term investors drawing regular income from their portfolios. With a focus on high yield bonds and shares, the fund manager is an experienced bond investor who has a flexible approach to seeking out the best income opportunities.

This fund is available via: Interactive Investor investment platform »

*Historic yield as at 30/9/2020

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.

Monthly Investing

Many ISA providers allow you to invest monthly. Nutmeg offer a simple ISA plan where you can set up different pots for different savings objectives e.g. house fund; children's saving fund where you can decide on the different risk levels you are prepared to take. For more information on how you can invest tax efficiently from £100 pm click here »

What is a monthly income fund ISA?

Monthly fund income ISAs offer a way to take a monthly income from your investments in a tax-efficient manner. They let you use your annual ISA allowance to invest in stocks and shares without paying tax on the return you receive.

The fund manager will invest your money with the goal of providing a regular income, rather than necessarily aiming for the highest possibly growth. This makes this kind of investment product popular with those who wish to use their savings to generate regular, dependable returns, such as retirees.

Monthly income fund ISAs usually use a diversified approach to investing, meaning some of your money may be in cash and some in stocks and shares. As the goal is to provide a regular income, fund managers will normally aim for relatively low risk investments.

However, as with any investment in stocks and shares, there is the potential for the value of the assets to go down as well as up which could harm your potential income.

Benefits of a monthly income fund ISA

By investing in a monthly income fund ISA, you can:

  • Use your saving to generate a regular, tax-efficient income
  • Limit your risk – fund managers for monthly income ISAs generally invest in dependable shares from companies with a good track record
  • Choose from a wide range of products to match the level of risk and return you are comfortable with

Alternatives to monthly income fund ISAs

If you are looking to see larger returns or want to put your savings into a longer term investment, there are various other investment ISAs you can choose from.

Popular investment ISAs include:

Growth ISAs – If you want to see bigger returns and don’t mind waiting longer to see them, a growth ISA may be a good choice. These typically have terms of 3-6 years and you usually won’t get anything back until the loan term ends.

Structured ISAs – Instead of investing in individual stocks and shares, a structured ISA is linked to the overall performance of an index such as the FTSE 100. This limits your risk but can result in lower returns than those provided by well-chosen stocks and shares.

Kick out ISAs – A kick out feature means your investment ISA has a chance to mature early if certain conditions are met. This can allow investors to hedge their bets as there are more chances for the fund to pay a return throughout its lifetime with the payouts generally getting larger the longer the fund runs.

Recommend Fidelity's Stocks & Shares ISA to a friend and you could be rewarded!

Are you an existing Fidelity ISA customer?

If you refer a friend to Fidelity and they open a new Stocks and Shares ISA online with a lump sum of £5,000 or more, you’ll both receive a £50 Amazon Gift Card as a thank you! 

Sign up today to start referring your friends

- Refer multiple friends

- Receive a £50 Amazon gift card for each friend you refer that meets the criteria*

- Online applications only

Both you and your friends will need to register for the offer. Exclusions apply, please read Fidelity's full offer terms and conditions for details.

*The maximum value of rewards which can be received is £1,500

Important information - the value of investments can go down as well as up, so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

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

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Stocks & Shares ISAs

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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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