All Savings Accounts
Charles Stanley & Co Ltd Charles Stanley Direct ISA
Shelter up to £20,000 this tax year. No capital gains tax and no further tax to pay on any income from your ISA. Use your allowance by 5 April each year or lose it! Top up your ISA online in a couple of minutes. Transfer and consolidate existing ISAs. Access your money at any time
Barclays Investment ISA
Interest is paid on the first day of each month, based on the cash held in your account the previous month. Investment ISA interest rates may change from time to time. Barclays let you know if they do, as they have set out in their terms and conditions. The amount of interest you get depends on the amount held in your account.
Halifax Online Investments Stocks and Shares ISA
You can invest up to £4,000 in a Lifetime ISA and the remaining allowance between any combination of the other three types of ISA, as long as you don’t exceed £20,000 in total across your ISAs. For example, if you invest £4,000 into your Lifetime ISA , you must save no more than £16,000 in total within a cash ISA , stocks and shares ISA or an innovative finance ISA.
How does an investment ISA work?
An ISA is an Individual Savings Account that is a popular and accessible tool to invest or save. It allows you to benefit from generous tax breaks thanks to the ISA allowance in the UK every tax year.
Investment ISAs best suited for longer-term investing (typically for more than 5 years) to ride out any market ups and downs.
The returns you could earn far exceed that of a cash ISA and by using your ISA allowance your returns can be free from income tax. However, if you get a dividend from your investment you will have to pay dividend tax.
Although you could earn more from an investment ISA than in a cash ISA, there is an element of risk involved. Due to the volatility of the stock market, there’s the potential to lose some or all of the money you invest.
As they can deliver significantly higher returns, investment ISAs are higher risk if the value of your investment falls or the return is less than the amount you pay in fees and charges.
There are no guarantees of success, so you must only invest if you are prepared to deal with the risks. If you’re comfortable with the possibility that the value of your investments can go both up and down, then the tax advantages and potential returns are hugely attractive.
FAQs about investment ISAs
What is an investment ISA?
An Individual Savings Account (ISA) is a type of savings account where you don’t have to pay tax on the interest earned. This type of account works like a wrapper where you can choose investment to put inside it.
What’s the difference between a cash ISA and an investment ISA?
Investment ISAs have better growth potential than cash ISAs. However, they are riskier than cash ISA’s because they can fall in value. The one to choose depends on the length of time you’ll be saving and your risk appetite.
Can I transfer my cash ISA into an investment ISA?
You can transfer your cash ISA into an investment ISA if the provider accepts ISA transfers. The provider may charge you for transferring into an investment ISA.
How many investment ISAs can I have?
You are only able to pay into one investment ISA each tax year. However, you can open a new ISA with a different provider each year.
How much can you invest in an ISA each year?
There's a limit to the amount you can deposit into your ISA. This is known as your annual allowance and may change each year. The limit is £20,000 for the 2017/18 tax year.
Can you withdraw money from an investment ISA?
Most products allow instant access to your money without impacting on the tax benefits of the rest of your savings within the ISA. However, some types of ISAs won’t let you return the money once it’s been withdrawn.
Are there tax advantages to opening an ISA?
Yes, there are several tax benefits to opening an investment ISA:
You won’t need to pay tax on any profits made.
There’s no tax to pay on interest earned on bonds.
You won’t need to pay tax on dividend income
How old do you have to be to open an investment ISA?
You must be over 18 and a UK resident to open an investment ISA.