Compare stocks and shares ISA

Investment ISAs, such as a stocks and shares ISAs, let you invest in different markets and could earn you a tax free profit.

  • Earn tax free returns
  • Invest in some of the most valuable companies such as Google and Facebook
  • Invest in different types of investment products

Compare stocks and shares ISAs from leading providers

You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.

How to find a stocks and shares ISA

1

Identify what kind of investor you are

How much experience you have with investing is a major factor when deciding what kind of funds to invest in when getting an investment ISA.

2

Choose the kind of investment funds you want

If you do know how you want to invest your ISA, then a self-select ISA might be a good option for you. If you're new to investing, an investment fund is a better option.

3

Pick a stocks and shares ISA provider

Choose an investment ISA provider that offers you best mix of features and costs that suits your needs. Make sure you watch our the different fees that the providers charges.

Stocks and shares ISA deals

Investment ISAs put your capital at risk, and you may get back less than you originally invested.

8 results found, sorted by affiliated products. How we order our comparisons. Commission earned affects the table's sort order.
Sort


Investment type

Wesleyan With Profits Stocks and Shares ISA
Invest from
£1,000 lump sum or £50 a month
You can invest in
1 fund
Wesleyan has been looking after the financial interests of members since 1841 and the With Profits fund is managed by its award-winning investment team. Review your investment online and get service from the UK-based customer support team.
Capital at risk.
Eligibility
Permanent UK Resident
Minimum Initial Deposit£1,000
Minimum Monthly Investment£50
Minimum Lump Sum Stocks & Shares ISA Investment£1,000
Sign up to receive a £50 Welcome Bonus (Ts&Cs apply)
InvestEngine ISA
Invest from
£100 lump sum or £1 a month
You can invest in
150 funds
InvestEngine offers commission-free ETF investing for individuals and small businesses, with the tools to help build and manage better portfolios. Sign up to receive a £50 Welcome Bonus. T&Cs apply.
Capital at risk.
Eligibility
Permanent UK Resident
Minimum Initial Deposit£100
Minimum Monthly Investment£1
Minimum Lump Sum Stocks & Shares ISA Investment£100
Hargreaves Lansdown Stocks and Shares ISA
Invest from
£100 lump sum or £25 a month
You can invest in
Over 3,000 funds
Kickstart your investing with an award-winning ISA. Choose your own investments with expert research and ideas to help you, or simply pick a ready-made portfolio. Manage via website, app or phone.
Capital at risk.
Eligibility
Permanent UK Resident
Minimum Initial Deposit£100
Minimum Monthly Investment£25
Minimum Lump Sum Stocks & Shares ISA Investment£100
Scottish Friendly My Choice (ISA)
Invest from
£100 lump sum or £10 a month
You can invest in
10 funds
Manage your ISA online with flexibility; increase, decrease, pause & restart payments. Invest from £10 p/m & get a gift worth up to £45. With over 150 years of experience & a UK based team, Scottish Friendly welcome all investors.
Capital at risk. ISA & Gift rules apply.
Eligibility
Permanent UK Resident
Minimum Initial Deposit£100
Minimum Monthly Investment£10
Minimum Lump Sum Stocks & Shares ISA Investment£100

What is a stocks and shares ISA?

A stocks and shares ISA, also known commonly as an investment ISA, is a type of tax-efficient investment account. It allows you to earn a return by investing your money in a variety of shares, funds, investment trusts and bonds.

Thanks to the annual ISA allowance any returns you earn are tax free. This means that you won't have to pay dividend, capital gains or income tax on any profits you make from the investments held in a stocks and shares ISA.

You can either use your entire ISA allowance for a stocks and shares ISA or you can split it between different types of ISAs.

For each tax year, everyone in the UK over the age of 18 is granted an ISA allowance. For the 2021/22 tax year, the annual ISA allowance is £20,000 per person. You can only pay into one investment ISA per tax year. But you can open a new one each year.

What types of investments can you invest in with a stocks and shares ISA?

Stocks or shares 

Shares are essentially slices of ownership in a given company. The value of a share is calculated by dividing the total market value of the company by the number of shares. The value of each share can vary depending on how the company performs and other external economic factors.

Investment funds 

These are 'collective' investments which pool your money with other investors. A fund manager uses that money to buy and sell a wide range of investments on your behalf, in order to achieve a fund’s objective. These investments can include shares in companies, real estate, or government bonds.

Investment trusts 

These are publicly listed companies that invest in financial assets or the shares of other companies on behalf of their investors. When you invest you are buying shares in an investment trust, the value of which fluctuates based on the underlying value of the assets they own and the supply and demand for their shares.

Open Ended Investment Companies 

OEICs are professionally managed collective investment schemes that pool your money with other investors. They are structured to invest in stocks and other securities. The company's shares list on the London Stock Exchange (LSE) and the price of the shares are based largely on the underlying assets of the fund. 

Unit trusts

These work by pooling your money with other investors into a single fund, which is managed by a fund manager. The fund manager then uses the unit trust fund to invest in asset classes through a variety of securities. Trustees are assigned to ensure that the fund manager follows the fund’s investment goals and objectives.

Exchange traded funds

ETFs are a type of security that track an index, sector, commodity, or other asset, which can be purchased or sold on a stock exchange just like a regular stock. An ETF is called an 'exchange traded' fund because it's traded on an exchange just like stocks are. The price of an ETF’s shares can fluctuate throughout the trading day.

Which stocks and shares trading platform should I choose?

Do-it-yourself platforms

These are trading platforms which allow you to pick where you invest, and for how long. These are best for experienced investors who know what they're doing. You'll need to:

  • Do your own research

  • Picking your own investments

  • Manage your portfolio yourself.

Do-it-for-me platforms

With these platforms, everything is taken care of for you and are typically used by first-time or inexperienced investors. These platforms will pick your investments based on:

  • How much you want to invest

  • How much your willing to risk

  • The kinds of investments you prefer

How much does a stocks and shares ISA cost?

Investing isn't free, but the idea is that whatever costs you incur to invest will be outweighed by the returns. This is why it's important to watch out for charges, because they can eat into your investment returns.

Some of the costs that you should be aware of include:

Transaction fee

This is charged every time you buy or sell a share on a platform. If you're a frequent trader, then you'll want to find a platform with the lowest fee possible. If you're long term investor, then it won't matter as much.

Trading Platform charge

Not only does the trading platform help you execute your transactions, many also provide you with insight and analysis to help you make investing decisions, all of which isn't free. The platform fee can be flat fee or percentage value of the amount of money you invest. Typically, the more you invest, the more you'll have to pay in fees.

Fund manager charge

When you have stocks and shares ISA, the fund manager who manages the investments within your ISA charges a fee. Typically, this is a small percentage of the amount of money you have invested in a fund.

Transfer fee

If you decide to change trading platforms, you'll likely have to pay a transfer fee. This is usually charged on a per fund bases, so if you have more than one fund in your stocks & shares ISA, you'll be charged for each one.

Are there any specialist stocks and shares ISAs?

Yes. You, when you're thinking of getting a stocks & shares ISA, you could look into the following options:

Pros and cons of stocks and shares ISAs

There are lots of reasons why you might like to get a stock and shares ISA. But there are downsides too:

  • The return on your investment could be a lot higher than what you could earn from interest on a cash ISA
  • Because you invest using your ISA allowance, any stocks and shares ISA returns you make are free from income tax
  • You can invest in several markets
  • You could lose all or some of your money if the funds you invest in don't perform well
  • You will likely need to invest your money over a significant period of time to see returns
  • Your money can go up and down, which might be stressful

Are stocks and shares ISAs covered by the Financial Services Compensation Scheme (FSCS)?

Yes, most ISAs, including stocks and shares ISAs are covered by the FSCS up to £85,000 per person, per institution¹. These means that in the unfortunate event that your ISA provider or fund manager were to go bust, you'd be covered up to that amount.

However, this does not mean that you are protected if the investments in your stocks and shares ISA were to lose value from fluctuations in the stock market.

Do you have to pay tax on earnings from stocks and shares ISA?

ISAs fall under the category of what are called 'tax wrappers'. This means that any money deposited in an ISA is sheltered from being taxed, whether it's:

Capital Gains Tax 

If you were trading stocks and shares in the open market, you'd have to pay Capital Gains Tax (CGT) on any profits that exceed £12,300 (2021/22 tax year).

If you're a basic rate taxpayer, you'd pay a CGT rate of 10%. If you are a higher or additional rate taxpayer you'd CGT of 28%.

But by investing through a stock and shares ISA, any profits you earn, including any above the £12,300 threshold, are tax free.

Dividend Tax

Any dividend income that falls outside your personal allowance, which is the amount of income you can earn each year without paying tax, could be taxable.

But you also have a tax free dividend allowance of £2,000. So any dividends that exceed your dividend allowance would have dividend tax deducted based on the tax band you fall into.

Salman Haqqiquotation mark
Although returns on investment ISAs are never guaranteed, you could earn more with a stocks and shares ISA than you would with a cash ISA. But always think about how much you are prepared to lose before you choose the ISA for you.
Salman Haqqi, Investment Editor

Are ISAs the best way to maximise your savings interest?

You may be considering an ISA to maximise the interest on your savings. However, saving money in an ISA is no longer the only way to earn tax-free interest.

The personal savings allowance lets you earn a set amount of money each tax year before you have to pay tax on your earnings, including your savings interest.

In the 2021/22 tax year, the personal savings allowance lets you earn up to ...

  • £1,000 for basic-rate tax payers

  • £500 for higher-rate payers

This means that you will only pay tax on savings interest if the amount of interest you earn exceeds your starting rate for savings (if you earn under £17,500), your personal savings allowance, and if your total income exceeds your personal allowance (£12,570 in the 2021/22 tax year).

For most savers, the interest you earn will therefore not be taxed. You could save your money in whichever account that offers you the best deal without having to worry about paying tax on your earnings.

However, if you're likely to exceed your personal savings allowance, then an ISA can still be a great way of maximising the money you earn in interest.

Alternatives to stocks and shares ISAs

Cash ISA

A cash ISA is a good option for those who want to have access to their money, should they ever need to withdraw money.

Liftime ISA

A Lifetime ISA (LISA) let you save up to £4,000 a year in it that be used to purchase your first home or when you retire. The government adds a cash bonus of up to £1,000 a year on top. But it can only be opened by people aged between 18 and 39.

Junior ISA

You can open a Junior ISA for your child under the age of 18. A Junior ISA can be an efficient way of saving because tax isn’t paid on the returns. This means when your child turns 18, their Junior ISA won't be liable for income tax and capital gains tax deductions.

Type of ISAAccess to fundsTax benefits
Cash ISAYesEarn tax free interest on savings
Lifetime ISANo - Only when buying first property or when 60 or over Get an £1,000 from the government on £4,000 in savings
Junior ISANo - Only when the child turns 18Save up to £9,000 for the tax year

Our top tips on stocks and shares ISAs ...

  • Invest your money for at least five years to ride though ups and downs in the market. If you think you'll need access to that money sooner, then a stocks and shares ISA may be not be a good option.

  • Invest money regularly to maximise your long term returns. Even investing small sums regularly can add up over time.

  • Don't panic if the market takes a dip. Ups and downs are expected in the stock market. If you're investing for the long term, a momentary dip is unlikely to hurt you.

Stocks and shares ISA FAQs

You can only pay into one investment ISA each tax year, but you can open and pay into a new investment ISA in each future tax year.

Most let you track the performance online or you could also ask your financial advisor for a valuation if you invested through one. Read this guide for more.

No, you could lose money in an investment ISA due to the volatility of the stock market.

Investing is for the long-term. If you decide to start a stocks and shares ISA, it's a good idea to invest for at least five years if you can. That's so that any ups and downs in the market have time to even out, and you don't lose money.

Yes, but only if the company accepts ISA transfers. There may also be charges for transferring into an investment ISA, find out more here.

You can save into a cash ISAinnovative finance ISA and a stocks and shares ISA in each tax year, but only up to £20,000 between all three types.

Explore investment ISA guides

See more guides

What is an ISA? How do ISAs work? | Savings Accounts

An ISA lets you earn interest without paying any income tax, but you are limited to how much you can put in. Here is everything you need to know to get started.

Read More

7 questions you must ask before you invest

The thrills and spills of the stock market can be exciting and lucrative, but sometimes it can be hard to know where to start with investments. Ask yourself these 7 questions to work out how and where to invest your money.

Read More
business-man-at-home-on-laptop

How do you invest in OEICs?

OEICs offer a way to invest your money in a wide range of assets without the hassle of managing them yourself, here is how to get started.

Read More

Why compare stocks and shares ISAs with money.co.uk?

Comparing investment ISA accounts could save you money. Our multiple award-winning comparison service makes sure you get the lowest fees and rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.

Proud to be award winning

We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.

¹According to the FSCS website

Last updated: 3 September, 2021