Our 10 best last minute ISA ideas
With just over one week to go until the 5th April deadline, if you’re reading this then I will assume you have left using some or all of your £15,240 ISA allowance (2016/17 tax year) to the last minute. The good news is that not only is there still time to sort out this year’s ISA allowance, some of the ideas below also allow you to sort out next year’s £20,000 ISA allowance (2017/18 tax year) as well – the Double ISA option. As time is running out, here is a quick review of our best last minute ISA ideas…
1. Our best-selling Investment ISA
For those looking for a high level of growth but also with the opportunity to mature early or ‘kick out’ each year, the Enhanced Kick Out Plan from Investec offers 10.65% for each year invested provided the FTSE 100 Index at the end of each year is higher than its value at the start of the plan (subject to averaging). This is our best selling growth plan with ISA investors over the last 12 months and also features a Double ISA option. Capital is at risk if the FTSE falls by more than 50%. Click here for more information »
2. Fixed income Investment ISA
Investec’s Enhanced Income Plan is a regular ISA season top seller, mainly due to it paying a fixed income of 5.04% per year regardless of what happens to the stock market. The plan also has a fixed term and monthly income payments, so you know exactly how much you will paid, when, and for how long. This plan features a Double ISA option. Capital is at risk if the FTSE 100 Index falls by more than 50%. Click here for more information »
3. Managed Portfolio Investment ISA
The Nutmeg ISA gives investors access to fully managed, globally diversified portfolios that are regularly rebalanced. The ISA is easy to set up, and you can choose the level of risk you wish to take. Annual fees start at 0.75%, reducing to 0.35% for larger investments, and the minimum investment is just £500, although for portfolios below £5,000 they also ask for a minimum monthly contribution of £100. ISA transfers are also accepted. Capital is at risk. Click here for more information »
4. Defensive Investment ISA best seller
The Defensive Growth Plan from Investec offers a fixed return of 34% (equivalent to 5.0% compound annual growth) plus a return of your original capital, provided the FTSE 100 Index has not fallen by 50% or more at the end of the investment term. If it has, no growth will be achieved and your capital will be reduced by 1% for each 1% fall, so you could lose some or all of your initial investment. This plan also features a Double ISA option. Click here for more information »
5. High Yield Investment ISA top seller
The Meteor FTSE Contingent Income Plan pays a quarterly income of 2.05% for each quarter the FTSE 100 Index does not end less than 20% below its value at the start of the plan. So even if the FTSE falls up to 20% each quarter, you would still achieve 8.20% annual income. This plan features a Double ISA option. Capital is at risk if the FTSE has fallen by more than 40% at the end of the investment term. Click here for more information »
6. FTSE Tracker Investment ISA
Tracker investment plans usually offer investors a multiple of any growth in the FTSE 100 Index over a set term. The newly launched FTSE Enhanced Tracker Plan from Focus offers twice the rise in the FTSE after 6 years, with no upper limit on how much it can rise. The plan could also end after just 3 years at which point, provided the FTSE has risen by at least 10%, you will receive a fixed return of 45% plus your initial investment back. This plan also features a Double ISA option. Your capital is at risk if the FTSE has fallen by more than 40% at the end of the investment term. Click here for more information »
7. Innovative Finance (Peer to peer) ISA
The Innovative Finance ISA (IFISA) is the latest type of ISA (introduced on 6th April last year) and is designed to provide a tax-free wrapper for investors in Peer-to-Peer Lending platforms. Crowd2Fund is an FCA regulated platform where your investment is used to lend to businesses that require funding. Initially, each business submits a business proposal for funding directly to Crowd2Fund and once received, their risk and due diligence team then review the proposal against their strict acceptance criteria. If successful, the business is then listed on the platform and investors pledge the amount they want to invest and the interest rate. The estimated APR (also known as the target APR) is currently 8.7%. The platform also accepts ISA transfers. Capital is at risk. Click here for more information »
8. Junior Investment ISA
Charles Stanley offer a Stocks and Shares Junior ISA with a minimum lump sum investment of £500, or just £50 per month. They offer a fully-featured investment platform so you can tailor your portfolio as you want, alternatively they have a Foundation Fundlist which is a list of preferred funds across all of the major sectors, selected by their in house research team. There is a platform charge of 0.25% per annum with no additional charge for buying and selling funds. You can save up to £4,080 this tax year (£4,128 in 2017/18) and you can transfer in Child Trust Funds and existing Junior ISAs. Capital is at risk. Click here for more information »
9. Self-select Investment ISA
You can open a Hargreaves Lansdown Stocks & Shares ISA with a lump sum of just £100 or you can start a monthly direct debit from just £25 per month. With their ‘Do-it-yourself’ ISA you can invest in over 2,500 funds, with no charge when you buy and sell funds and annual management charges starting at 0.45% per annum. You can also choose to invest in shares from as little as £5.95 per trade, as well as bonds, ETFs and investment trusts. Capital is at risk. Click here for more information »
10. Low Monthly Contribution Investment ISA
If you are only looking to invest a small amount each month, The My Select (ISA) from Scottish Friendly allows you to invest from as little as £10 per month. You can stop, restart, raise or lower your payments whenever you want, and you have a range of Scottish Friendly funds to choose from including stock market and bond funds. As at 31/12/15, they look after assets worth more than £2.6 billion. Remember, the value of your investment can go down as well as up and you could get back less than your have paid in. Click here for more information »
Click here to compare Cash ISAs »
Click here to compare Investment ISAs »
Click here to compare our Top 10 Investment ISA plans »
Click here to compare Junior ISAs »
No news, feature article or comment should be seen as a personal recommendation to invest. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment. Fair Investment Company does not offer advice and any investment transacted through us in on a non-advised basis. If you are at all unsure of the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. Different types of investment carry different levels of risk and may not be suitable for all investors. The past performance of the FTSE 100 Index is not a guide to its future performance.
Some of the investments mentioned are structured investment plans that are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.
Tax treatment of ISAs depends on your individual circumstances and is based on current law which may be subject to change in the future. ISA transfer charges may apply, please check with your provider.