A Guide to the Best Investment ISAs Where You’re the Boss
Self-select investment ISAs allow everyday lenders to take control and actively manage their investments. If you enjoy monitoring your investment performance and knowing where your money is going, rather than leaving it to ‘set it and forget it’ algorithms, these types of ISAs are the ones best suited to you.
Over the last few years, developments in technology have led to a rise in online investment platforms, giving the retail investor access to opportunities that were previously unavailable. Combined with the tax-free earnings of an ISA, self-select ISAs are therefore the natural evolution.
Why choose a self-select ISA?
Unlike investment tracker platforms, which spread your funds across an entire index or asset class, self-select ISAs let investors take full control. You can do your own research and capitalise on your knowledge of particular sectors or companies.
Similar to traditional ISA products, self-select ISAs allow investment of up to £20,000 to be made per year, with all future earnings left to grow tax-free, with no income or capital gains tax. This means the possibility of earning great compound interest is even higher.
What are the different types of self-select investments ISAs available?
Self-select ISAs allow investment into a range of different types of financial products including individual shares, peer-to-peer business loans, bonds, investment trusts, unit trusts and gilts.
The fees on self-select investment ISAs can vary, depending on whether the platform requires investors to engage with a broker or provide an execution-only service. Typically, those relying on an execution-only charge less.
- Asset/s type: Peer-to-peer debt investment into a range of growing British businesses.
Crowd2Fund is the one of the only existing self-select Innovative Finance ISA (IFISA) on the market for business loans, providing the accounts, website and director LinkedIn profiles of the businesses for you to assess. Lending funds to this asset class can help the economy grow, as well as offering high levels of return. The platform has a range of new, live opportunities to invest in, with APRs from 6 to 15%.
- Minimum investment amount: £100.
- Can you transfer in existing ISAs? Yes. There are no limits to the amount of historic ISAs you can transfer to Crowd2Fund’s IFISA.
- Fees and costs: There are no costs to open a Crowd2Fund account and IFISA. A 1% annual fee is taken on interest and capital payments to investors. Fees are not charged on individual transactions.
- Account management: Manage investments online or through an iOS app.
- Asset/s type: Investment into stocks and shares.
- Minimum investment amount: To get started pick between either a one-off £100 investment or £25 per month direct debit.
- Level of return: dependent on the individual performance of the stocks and shares.
- Can you transfer in existing ISAs? Yes. Investors can transfer cash and/or stocks and share ISAs.
- Fees and costs: ISAs are free to set up, with an annual charge of up to 0.45% for investments held. Investors have to pay up to £11.95 for dealing shares through the platform.
- Account management: Manage investments online, by phone, post or within the app.
- Asset/s type: Investment into a range of different asset classes including shares, gilts, bonds, exchange-traded funds (ETFs) and investment trusts.
- Minimum investment amount: There is no minimum qualifying fee.
- Can you transfer in existing ISAs? Yes. Any type of ISA can be transferred through an online form, once a Smart Investor account is opened.
- Fees and costs: Fees can vary from £3 to £6 per transaction and as there is a monthly holding fee of £4 to £125, depending on the type of investments held, trading activity and whether users deploy their money into funds which have management fees.
- Account management: Manage investments online, by phone or within the app.
Scottish Friendly – My Choice (ISA) – Stocks and Shares ISA
- Asset/s type: Offers investment across a range of 9 share funds.
- Minimum investment amount: Accounts can be opened with a £100 lump sum and a £10 a monthly direct debit.
- Can you transfer in existing ISAs? Yes. ISAs from other providers can be transferred by completing and posting a form downloadable from Scottish Friendly’s website.
- Fees and costs: A 1.5% annual management charge is levied on investors.
- Account management: Manage investments online, by phone or by post.
This article was published in collaboration with Crowd2Fund.
Updated: Tuesday, April 2nd, 2019