Which provider to start an ISA?


(Andre Borie) #1

I’d like to start investing some money into an ISA and would like to get some advice about which provider/app/bank to choose. I’m completely new to this so all advice is welcome. I’m looking to put away 500£/month more or less.

Thanks! :upside_down_face:


#2

Is there anything in particular you want to use the ISA for?


(Peter Roberts) #3

I’ve recently started a pot on Nutmeg since it was recommended to me by a few friends


(Excited about Christmas) #4

Are you looking to go cash or shares? Remember you can only have one per tax year, so choose wisely. I have a share one with Interactive Investor (was TD Direct but got bought). Seems reasonable although they are introducing fees even when you don’t trade. Looking forward to seeing what Freetrade can do (maybe via Monzo!)


(Sean) #5

@Rjevski You should try chip. If you get invites you can get up to 5% interest.

You can save up to £600 a month I believe (manually)

https://getchip.uk

Let me know if you want a referral code. Not sure if we’re allowed to post them on the forum? :confused:


#6

look at niche providers if you work/worked in certain industries, e.g. Police Mutual


#7

You can have up to 4 ISAs each year (cash, equity, IFISA, LISA) as long as total doesn’t exceed £20k: https://www.gov.uk/individual-savings-accounts


(Daniel Warriner) #8

I wonder if there’s a :monzo: integration with Chip on the horizon?


(knows someone who knows Tom quite well) #9

Decide your timescale.

Less than 5 years, go with cash. More than 5 years, the stock market and bonds.

Fees fees fees. Fund performance inversely correlates with fees.

I am a true believer in the total inability of anyone to pick the high performers ahead of time. Read Lars Kroijer - he’s an ex hedge fund manager who basically says the same. The TL;DR is invest in a world tracker plus bonds to reduce the volatility. I use vanguard and for a basic starter portfolio it is hard to beat the lifestrategy products. Very cheap (see above) and mechanical. Base your portfolio around something solid like this. If you want to play at stock picking, do it with a small proportion of your money and track it - if you beat the market over 10 years you are in the top 2%.

This advice is of course worth what you paid for it. You will get lots of advisors trying to separate you from your money, including robo ones.


(Excited about Christmas) #10

Sorry yes - one of each type.


(Hugh) #11

That isn’t tax free though is it?! I’m sure the limit was about £3k/year tax free?


(knows someone who knows Tom quite well) #12

You get 20k allowance per year split amongst the different types of ISA.

Everything in your ISA is tax free.


#13

Freetrade are also due to launch Stocks & Shares ISAs, @v18n might be able to give you further details if you’re interested :slight_smile:


(Louis Otto) #14

What are you looking to save for, as well? A house? If it’s your first - do a LISA with H&L or Nutmeg, something like that.


(Tommy Long) #15

I’d second Interactive Investor (was TD Direct but got bought). Moved from IG to them recently and they’re great for what I want (which is mainly access to micro-cap Australian and Canadian mining shares).


#16

Yes, we are rolling out with Stocks & Shares ISAs!

@Rjevski it’s great you are looking to save. Sounds like you’ll ‘pay yourself first’, which is powerful.

Before you choose a provider, decide your goals (buying a house in the next X years, retirement, etc.), because your choice will vary based on that.

Always consider fees and try to minimise them. Over time, they compound - and high fees have a substantial effect on your returns.

The UKPersonalFinance subreddit has a flowchart and ISA FAQs in the sidebar. It’s also a fantastic place to get answers.

There is a lot of well-meaning general advice out there (‘just put it all into this fund’ etc), but they don’t consider your individual circumstances and goals. So, always do your own research, and ask the questions that matter to you. I didn’t. I learnt the hard way. :sweat_smile: