Natwest Stocks and Shares ISA

Natwest Stocks and Shares ISA

Natwest do not currently offer Stocks and Shares ISA but do offer a range of other options for investing and savings, including a number of Cash ISAs.

Choosing an investment ISA

If you’d like to put some money away each month or invest some spare cash then an Investment ISA could be a tax-efficient way for you to do so.

You can invest anything up to the tax threshold for that year and spread the money across a Cash, Stocks and Shares and Innovative Finance ISA or consolidated with one account.

You can only fund one stocks and shares ISA per tax year but as all providers must allow you to move your money you will be able to transfer. It’s worth checking, however, if your current provider charges penalties. Otherwise you could receive back less than you originally invested.

Generally, Stocks and Shares ISAs have the potential to provide better returns than a savings account but customers must be prepared for the risk element that is involved as your money could lose value depending on how the market performs

About Stocks and Shares ISAs

This kind of account is not usually an investment in its own right but it does provide you with a platform to invest from. 

An investment ISA can hold money in order to invest in qualifying sources such as government bonds and corporate bonds as well as shares and stocks.

They are generally available as either self-select ISAs that allow you to invest directly into stocks and shares or as collective investment schemes. 

Stocks & shares ISA are referred to as ‘tax-efficient’ wrappers, as there is no capital gains tax to be paid on gains made on investments held within the wrapper, although dividends do incur 10% income tax at source.

Are you new to investing or simply don't have time?

A ready made ISA investment portfolio may be right for you where you get investment experts to choose the asset mix of your ISA on your behalf.

The good news is that over the last few years investment platform providers have upped their game in providing carefully constructed model portfolio options to suit all kinds of investors for your ISA.

Using low cost funds such as ETFs and index trackers and smart technology there are some excellent options for investors.

Providers of ready-made portfolios include:

1. Interactive Investor
2. Hargreaves Lansdown
3. Moneyfarm
4. AJ Bell

Choosing a ready made ISA portfolio

With each ready made portfolio, it is the investment team at your selected portfolio provider who have chosen the investments.

Each portfolio will typically have a set risk profile e.g. cautious, balanced, adventurous, and then will invest in assets that are aligned with the portfolio risk profile. The ISA portfolio provider’s documentation will clearly explain exactly where your money will be invested.

Depending on the type of ISA portfolio service offered:

1. The fund managers will then manage the investments on your behalf or
2. Having made the investment choices for you, it is up to you on how you “manage” the investments going forward

The investment experts at the portfolio provider may also monitor the make-up of the portfolio, and may consider changing it if market conditions alter, which might help mitigate the effects of falling stock markets.

For example, they might decide to have more exposure to one investment fund which they think is set to perform well, and to reduce their exposure to another fund.

However, you still need to make the initial decision as to which portfolio to choose.

When deciding which portfolio to invest in, you might decide to look at past performance records.

If you do, then please remember that past performance is not necessarily a guide to future performance.