- Choose from over 2,400 funds, shares, Exchange Traded Funds, corporate bonds, gilts and more
- No dealing charges for funds
- Open an ISA in under 5 minutes online or by phone
Looking for a tax-free home for your savings? Want to pick your own shares? A self-select ISA could be for you. We give you access to a number of ISA providers who offer a share dealing ISA to make best use of your ISA allowance.
Our ISA service provides you with information on various ISAs as well as guides to help you decide on the right product for you. We earn commission based on arrangements we make to introduce you to product providers, further details are available on request. We do not provide you with advice and you should discuss specific product terms with the product provider. Self select ISAs can be higher risk than other ISAs. If you are in any doubt as to whether these plans are suitable you should seek independent financial advice. There is a risk that the company may be unable to repay your investment, for example if they were to cease trading. In this instance Stocks & Shares ISAs are eligible for the Financial Services Compensation Scheme (FSCS) up to £50,000 per person, per institution.
Experienced investors who want greater control over their investment choices may want to consider using a self-select ISA.
These allow you to pick and buy shares and investments yourself to hold in a tax-free ISA wrapper. Here, we explain how self-select ISAs work and look at some of their advantages, as well as the potential risks.
A self-select ISA is a type of stocks and shares ISA (as opposed to a cash ISA). As the name suggests, a self-select ISA enables you to choose what assets you want to hold in your ISA, rather than a fund manager making the decisions.
They are usually offered by stockbrokers and the wealth management arms of high street banks, and, because investments are held within an ISA, returns are free of income tax and capital gains tax. The maximum you can hold in a self-select ISA this tax year, or any stocks and shares ISA, is £11,520. Alternatively, you can split your allowance and invest £5,760 in a stocks and shares ISA and the remaining £5,760 in a cash ISA
As well as individual shares, there is a wide range of other assets that can be held within a self-select ISA, including unit trusts, investment trusts, open-ended investment companies, bonds, gilts and exchange traded funds.
Remember that the value of these investments can fall as well as rise so there is more risk attached with investing in a stocks and shares ISA than there is with a cash ISA.
When choosing a self-select ISA, you’ll also need to decide whether you want to go for an execution-only broker, or a broker which offers advice.
Execution-only brokers have the lowest fees as they simply provide the internet trading platform you’ll need to trade shares and other investment. Broker firms that offer advice charge more because they will help you decide which shares to pick.
Picking the investments you want to hold within your ISA gives you much greater control in comparison to handing the reins over to a fund manager. However, bear in mind that you will need to actively monitor your investments and keep an eye on how they are performing – if you don’t have the time to do this, a self-select ISA may not be the right choice for you.
The other major advantage of a self-select ISA is the tax benefits. Investment growth and dividends received within the ISA are free of capital gains and additional income tax, which is particularly advantageous for higher rate taxpayers.
You can change your investments within your ISA if you want to, but remember you cannot move your money into a cash ISA.
It can be tricky working out where to go for your self-select ISA, but MoneySupermarket.com enables you to compare what’s on offer to help you decide which provider is right for you.
You can see at a glance what all the major players provide, including trading costs and the number of funds available for you to choose from, plus which allow you to buy individual shares and other investments as well as funds.
Keep up-to-date with the latest savings news in our thriving community. Everything you need to find the best savings accounts including expert articles and videos.
Keep up to date with the latest savings news
16 May 2013
09 May 2013
25 April 2013
Discuss your savings questions with other users
Moneysupermarket.com Limited is an appointed representative of Moneysupermarket.com Financial Group Limited, which is authorised and regulated by the Financial Services Authority (FSA FRN 303190). Moneysupermarket.com Financial Group Limited, registered in England No. 3157344. Registered Office: moneysupermarket House, St. David's Park, Ewloe, CH5 3UZ. Telephone 01244 665700.