Stocks & Shares ISAs - Investment ISAs | moneyfacts.co.uk

Stocks and Shares ISAs / Investment ISAs

  - Often referred to as Investment ISAs, Stocks & Shares ISAs can offer a tax-efficient investment opportunity for your ISA allowance.
 

If you're looking for a tax-efficient savings vehicle and are comfortable with an element of risk, a stocks & shares ISA could be for you. It's essentially a tax-efficient wrapper for your savings, but rather than keeping it in cash, your money is invested in the stock market.

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Investec Stocks and Shares ISA
Virgin Money
Account Type
Investment ISA
Min. Investment
£10,000
Funds available: 5 portfolios

Further information...
With a Click & Invest Stocks & Shares ISA you'll get an actively managed online investment portfolio that is specific to you and your investment goals. Our specialist Investment Managers and in-house Research Teams will create and continuously manage your investment portfolio so you don't have to. We are part of Investec Wealth & Investment, who have over 180 years of experience in managing client investments.
All investment carries risk and you may get back less than you invested.

Virgin Money Stocks and Shares ISA
Virgin Money
Account Type
Investment ISA
Min. Investment
£1 or £1/month
Funds available: 5 funds

Further information...
Virgin Money's passively managed range offers a choice of five funds. Each with a different level of risk and potential reward so you can choose the fund(s) that best meet your needs. Generally, the more risk you are prepared to take with your money the greater the potential reward. There is an annual ongoing charge of 1% of the value of your fund - no other charges.

Remember, the value of your investment can go down as well as up and you may get back less than you invest.

Moneyfarm Stocks and Shares ISA
Moneyfarm
Account Type
Investment ISA
Min. Investment
£1
Funds available: 12 portfolios

Further information...
A Moneyfarm Stocks and Shares ISA offers a personalised, hassle-free, tax-free investment solution. Moneyfarm crafts a portfolio suited to your investor profile and risk tolerance, then fully manages it on your behalf, so you don't have to. There is no minimum investment and the one low management fee ranges from 0% to 0.6% with no extra costs. The first £10.000 of your portfolio is always managed free of charge. Regulated by the FCA and protected by the FSCS. Your capital is at risk.

£20,000 managed free of charge for 1 year with code MFACT20K.

One Family Junior ISA
One Family
Account Type
Junior ISA
Min. Investment
£10 per month
Funds available: 2 funds

Further information...
The OneFamily Junior ISA helps you to invest for your child's future. It could help towards going to uni, driving lessons or perhaps helping to pay for a flat of their own.

It's designed to be a long term children's investment. You invest for your child's future, and only the child can take the money out and only once they're 18. Because it invests in stocks and shares, the Junior ISAs value can fall as well as rise, so your child could get back less than has been paid in.

Open your child's Junior ISA online and set up a Direct Debit and as a thank you OneFamily will send you up to £50 in e-vouchers (gift terms and conditions apply - please see OneFamily website).

Barclays Investment ISA
One Family
Account Type
Investment ISA
Min. Investment
Any lump sum

Further information...
Invest in over 2,000 funds, shares and other investment opportunities.

Hold funds for just 0.2% p.a. of the value of your fund holding. Other fees apply.

Service currently only available to existing Barclays Bank customers with access to Barclays Online Banking.

Investments can fall in value. Barclays Smart Investor doesn't offer advice. If unsure, seek independent advice.

Halifax Investment ISA
Halifax Stocks and shares
Account Type
Investment ISA
Min. Investment
£2,000 or £100/month
Funds available: 3 funds

Further information...
Our Investment ISA is a Stocks & Shares ISA, and has the potential to provide better returns than a savings account. We have three Managed Funds to choose from which invest in a wide variety of non-cash assets on your behalf. Our Investment ISA is a tax-efficient way to make your savings work harder. Capital at risk. Apply now!

Fidelity Stocks & Shares ISA
Account Type
Investment ISA
Min. Investment
£1,000 or £50/month
Funds available: 2,000 funds

Further information...
A tax-efficient way to help you save for the future. Our Stocks & Shares ISA gives you the flexibility to hold cash as well as investments - so you can hold your money in cash if you are concerned about the market's prospects, and move into investments when you believe they have more potential. Invest up to £20,000 in the 2017/18 tax year. Capital at risk. ISA eligibility applies. All tax rules may change. Fidelity Personal Investing does not give advice.

Hargreaves Stocks and Shares ISA
Hargreaves Lansdown Stocks and Shares
Account Type
Investment ISA
Min. Investment
£100 or £25/month
Funds available: 2,500 funds

Further information...
The Hargreaves Stocks and Shares ISA has no dealing charges for funds, plus a low cost reinvestment service. There are super low annual charges on a range of leading funds, exclusive low charges on leading tracker funds and low annual account charge for funds of just 0.45%

94% of our clients rate our service as good, very good or excellent. (Survey in September, 2014 9,371 respondents)

Scottish Friendly My MoneyBuilder (ISA)
Scottish Friendly
Account Type
Investment ISA
Min. Investment
£10/month

Further information...
Put a little money aside for you. Start from £10 a month. Get £50 cashback when you pay in at least £50. Capital at risk. £50 exit fee applies within the first 5 years.

Scottish Friendly My UK Tracker Options (ISA)
Scottish Friendly
Account Type
Investment ISA
Min. Investment
£10/month

Further information...
A very British investment in the UK stock market from just £10 a month. Get £50 cashback when you pay in at least £50. Capital at risk. £50 early exit fee applies.

Scottish Friendly My Select (ISA)
Scottish Friendly
Account Type
Investment ISA
Min. Investment
£10/month

Further information...

Start investing for your future from £10 a month. Choose from a range of funds to suit your investment goals. Get £50 cashback when you pay in at least £50. Capital at risk. £50 early exit fee applies within the first 5 years.
Scottish Friendly My Select (Junior ISA)
Scottish Friendly
Account Type
Investment ISA
Min. Investment
£10/month

Further information...
Start investing for your child's future today. Open a Junior ISA from £10 a month. Get £50 cashback when you pay in at least £50. Capital at risk. £50 early exit fee applies within the first 5 years.

What is a stocks & shares ISA?

A stocks & shares ISA (otherwise known as an equity or investment ISA) is a way to invest in a wide range of funds on the stock market while retaining the tax-efficient element of a traditional cash ISA, with the money held being exempt from income and capital gains tax (other than dividends which may be subject to a tax charge depending on the amount of dividend income you receive).

Unlike cash ISAs, however, the stocks & shares version will actively invest your money across your choice of funds in the stock market. The majority of such accounts use collective investment funds, such as Unit Trusts or Open Ended Investment Companies (OEICs), and investors can either receive a form of income during the term of their investment or can wait until they encash their investment.

What's the difference between a cash ISA and an equity ISA?

The key difference between cash ISAs and equity ISAs is that the cash version holds onto your cash and pays interest at a set rate, while an equity ISA actively invests your money into external funds or company shares for the potential of bigger returns.

However, an equity ISA is not a savings account and should be viewed as an investment product. It's a higher-risk home for your money with the returns based on the performance of the specific funds, and there's a chance you could lose some or all of your initial investment. There are different rules regarding FSCS protection too, with investors currently covered for up to £50,000 instead of the £85,000 that cash ISA savers benefit from.

Buying a stocks & shares ISA - before you get started

Stocks & shares ISAs are more complex than cash versions. There are a number of different products you can choose from and funds you can invest in depending on your goals, with the key decision being whether you want to generate an income (in which case you'd choose income generating funds, denoted by the term "Inc") or want to grow your initial investment (where you'd need accumulation funds, denoted by the term "Acc").

You need to make sure you're comfortable with the level of risk involved, as well as the long-term nature of equity ISAs. There's no guarantee with this kind of investment and you may get back less than you put in, so despite the potential to secure better returns than with a traditional savings account, it's important to weigh up this factor.

It's only really suitable if you're willing to commit your money to an account for the long-term, too, as this will offer the best scenario for growth. While most funds can be sold at relatively short notice, this type of account won't be good for those who may need to dip into their savings in an emergency, so make sure you view it as a longer-term undertaking.

You'll also want to remember that, even though your investments will essentially be held in a tax-free account, there could still be certain tax payments and fund charges applicable. Equity ISAs are exempt from income and capital gains tax, while the taxation of dividends changed in April 2016, so that dividends are also paid free of tax if held within an ISA. However, these ISAs will usually charge fees, so always check the small print to see if the particular account is worth it.

Understand the risks

Any investment comes with an element of risk, particularly those with the prospect of higher returns, and it's important for any potential investor to understand them. Over time there could well be fluctuations in the value of an investment with the total value and any income generated going down as well as up, and in a volatile market some investors may get back less than they put in.

Different types of investment fund have different levels of risk - or to put it another way, they will be more volatile. For example, funds investing in smaller companies or emerging markets will be more volatile than funds that invest in UK blue chip firms. Also, growth funds investing in shares are more likely to be more volatile than funds investing in fixed interest investments such as Government gilts or corporate bonds.

It is usually a good idea to invest across a range of investment types (or asset classes) such as shares, bonds, property and cash to spread your risk. How much you invest in each category will depend on how much risk you are prepared to take, and how long you intend to invest for. Whatever you chose, please note that past performance should never be seen as an indicator of future returns.

Disclaimer: This is a basic guide to stocks & shares ISAs. It does not cover every circumstance and nor is it intended to be a source of advice. This information is aimed at customers within the UK. Tax treatment depends on your individual circumstances and may be subject to change.

 
 
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