Regular Savings ISAs
Regular savings ISAs allow you to save from as low as £10 per month allowing you to invest on a monthly or quarterly basis which provides flexibility if you wish to build up tax free savings but do not have the capital to invest all in one go.
Use the tables below to compare a range of the best Investment ISAs available this ISA Season. These Investment ISA options provide a wide range of investment fund choices with the option of either selecting funds yourself, or letting the experts manage your funds for you to help you make the most of your tax free savings allowance.
From 6th April 2019, you can save up to a maximum £20,000 over the course of the tax year, either in one ISA, or divided between a cash ISA and a stocks and shares ISA om whatever proportion you wish. By investing in regular savings ISAs, you will benefit in all investment conditions, particularly when investing in the stocks and shares, as your fixed regular contribution will buy more units when investment values are falling, i.e. you get more investment units for your fixed regular contribution, and this will be to your benefit when investment values begin to rise again.
Important Risk Information:
This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested.
Investments in Stocks & Shares ISAs do not contain the same degree of capital security as investments in deposits. Stocks and shares ISAs are designed as medium to long term investments of, for example, five years or more. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
What is an investment ISA?
How do I choose an investment ISA?
Before you open an investment ISA, make sure that:
- Your debts are under control – you’ve either paid them off or have affordable arrangements in place to do so.
- You have emergency savings that you can access easily if something unexpected occurs – if your car breaks down or you’re made redundant, you’ll need savings that you can use straight away.
If you’re very new to saving and don’t yet have a basic emergency fund, you may find that a cash ISA is more suitable for you at this stage. Once you’ve built up some accessible savings in this way, you might then want to consider an investment ISA.
Investment ISA tips for 2024
- You should be prepared to invest for the medium to long term with a investment ISA – for example, for five years or more.
- If you think you might require access to your cash in the next couple of years, a investment ISA may not be the right choice for you. Share prices can be volatile – and so if you were to withdraw your investment in the next twelve to eighteen months, you could end up with less money than you started with.
- Different investment ISAs have different investment options. These range from as little as £10 per month (e.g. through a fund) to a specified minimum investment (e.g. £500).
- Some ISA providers will give you online access to your account, allowing you to see the investment performance of your ISA and keep up to date with any charges incurred.
- If your investment ISA isn’t performing as well as you’d like, you will usually be permitted to transfer it another provider. To do this, speak to your new ISA manager who will arrange the transfer, allowing you to avoid losing any tax benefits by withdrawing your cash.
- You can transfer shares you get from an HMRC-approved SAYE (save as you earn) scheme run by your employer, or a share incentive plan, into a investment component of an ISA without incurring capital gains tax, up to your annual ISA allowance.
- You will not be able to transfer any existing non-ISA shares, or shares you’ve inherited, into an investment ISA.
- With an investment ISA, there is greater long-term growth potential than a cash ISA – however, bear in mind that the value of your investment can go down as well as up.
- If you have an investment ISA from a previous tax year, you’re permitted to move this into a current investment ISA or split it between more than one investment ISA.
- If you want to open a Junior ISA (JISA) for your child, you can also invest in investment on their behalf up to a maximum of £9,000.
How does a stocks and shares ISA work?
Your personal allowance for a stocks and shares ISA is £20,000 for the 2024/25 tax year. Investing this amount would use up your full ISA allowance, but if you prefer, you can divide your ISA allowance between a cash ISA and a stocks and shares ISA.
You could, for example, put some of your allowance in a cash ISA and the remaining balance can be invested in stocks and shares.
When considering a stocks and shares ISA, bear in mind that tax treatment may vary and is subject to change in the future.
Can I transfer a stocks and shares ISA to a new provider?
To transfer a stocks and shares ISA from one provider to another, speak to the new provider, who will arrange it on your behalf.
What do I need to bear in mind when choosing a stocks and shares ISA?
If you want the opportunity to spread your investments around different areas – and thus avoid putting all your eggs in one basket – you could choose a stocks and shares ISA provider that specializes in diverse portfolio management.
One of the key advantages of a stocks and shares ISA is that it can offer the potential to deliver higher returns than a cash ISA, especially if you plan to hold it over the long term.
Holding a stocks and shares ISA for a longer period of time increases your chances of riding out fluctuations in the market.
If you’re looking to hold your investment for at least five years, and are happy to take on a level of risk, then a stocks and shares ISA might be a suitable choice for you.
However, stocks and shares ISAs don’t provide the same level of security as cash ISAs. If you’re saving for the short term, need easy access to your money, can’t afford to risk your capital, or are simply risk-averse, then a stocks and shares ISA probably won’t be suitable for you.
As with all financial decisions, it’s best to seek independent advice if you’re unsure.
If a stocks and shares ISA isn’t the right choice for you, we also provide access to a leading range of cash ISAs.