Self-select ISAs explained
MoneySuperMarket doesn’t offer a comparison service for self-select ISAs but we have a broad range of guides and information to help you with your ISA decisions. You can also compare stocks and shares ISAs within our investments hub.
Key takeaways
A self-select ISA allows you choose which investments go in your stocks and shares ISA
Self-select ISAs offer a hands-on investment approach, and freedom to buy and sell investments from your own portfolio when you choose
It’s important to consider your financial goals, risk level, and time commitment when choosing this type of ISA
What is a self-select ISA?
A self-select ISA, (or DIY ISA), is a type of stocks and shares ISA that allows you to choose your own investments.
An ISA is a tax-efficient way to invest. Each adult in the UK can save or invest a maximum of £20,000 in ISAs each year, with the returns tax-free.
With a self-select ISA, you pick which shares to hold in your ISA, rather than having an investment company or provider or fund manager make the decisions for you.
A self-select ISA works in a similar way to a SIPP (self-invested personal pension), in that you have control over what you invest in.
From April 2027 only £12,000 of your £20,000 annual ISA contribution allowance can be saved in cash. The rest must be invested in stocks and shares. This does not apply to people aged 66 or over, who can continue to save their full ISA allowance in cash if they wish.
How do self-select ISAs work?
Here is how self-select ISAs work:
Open an ISA account
Providers and investment platforms such as Hargreaves Lansdown, AJ Bell and Interactive Investor offer self-select ISAs functionality.
You can open multiple self-select ISAs or stocks and shares ISAS each tax year, albeit with an annual subscription limit of £20,000.
Deposit funds
You can contribute a lump sum up to the annual ISA allowance (currently £20,000 for the 2025/26 tax year), and/or make regular contributions via direct debit.
You can split your annual allowance across different types of ISA - so you could have £12,000 in a cash ISA, for example, and £8,000 in self-select equity ISAs.
Choose your own investments
You can choose from a range of investment options such as individual shares, bonds, exchange-traded funds (ETFs), investment trusts, and mutual funds (OEICs).
Manage your portfolio
Make decisions about buying, selling, or holding investments. You can adjust your portfolio based on performance, risk appetite, or market conditions.
Withdraw or transfer
Withdrawals are tax-free but may reduce your remaining ISA allowance unless it's a flexible ISA - check the ISA rules.
You can carry out an ISA transfer to other ISAs without losing your tax wrapper.
What can I invest in with a self-select ISA?
Individual shares
Corporate bonds
Investment trusts
Open-ended investment companies
Gilts (government bonds)
Unit trusts
Exchange-traded funds (ETFs)
Exchange-traded commodities
What type of self-select ISAs are available?
When you choose to use a self-select ISA, you must also choose whether you need a broker or ISA provider that offers advice or one that doesn’t, known as an execution-only broker.
Execution-only brokers often have the lowest fees as they simply provide the internet trading platform you’ll need to trade shares and other investments.
However, broker firms that offer advice charge a management fee because they will help you decide which funds and company shares to pick – using their knowledge of the markets.
What are the advantages and disadvantages of self-select ISAs?
There are a number of pros and cons to consider when thinking about a self-select ISA. Here are some of the main things to think about:
Advantages
You’re in control: Being in charge of the investments you hold within your ISA, gives you more control of your investment account in comparison to handing the reins over to a fund manager
Tax benefits: As investment growth and dividends received within the ISA are free of capital gains and additional income tax, this can be particularly advantageous for higher-rate taxpayers and those with large share portfolios
Freedom: You make your own investment decisions, subject to the £20,000 annual investment limit
Protection: Stocks and shares ISAs are eligible for the Financial Services Compensation Scheme (FSCS) for up to £120,000 per person, per institution. Customers of investment firms that went bust before April 2019 are covered by the FSCS by up to £50,000 per person, per institution
Disadvantages
High risk: Self-select ISAs can be higher risk than other types of ISAs and the value of your investment can fall. There is no guarantee that you will make money. You could end up with less money than you put in. In contrast there is no risk to capital with a cash ISA
More involvement: With a self-select ISA you are more involved in your investment and that means you will need to keep an eye on how your investments are performing. If you don’t have the time to do this, getting financial advice might be a better option for you
What are the tax advantages of having a self-investment ISA?
Any profits you make from selling shares, ETFs, investment trusts, etc., within your ISA are completely tax-free.
Outside an ISA, gains over the annual capital gains tax (CGT) allowance (£3,000 in 2025/26) would be taxable.
Dividends paid from shares or funds in your ISA are not taxed. Outside an ISA, you pay dividend tax if your total dividends exceed the allowance (£500 in 2025/26, reduced from £1,000 previously).
Is a self-select ISA right for me?
Whether a self-select ISA is right for you depends on your individual circumstances, investment goals, experience, time commitment, and risk tolerance. You may want to seek help from a financial adviser to discuss your long-term financial goals.
A self-select ISA puts you in control of what you invest in so it can have an appeal to more experienced or confident investors. They can also offer good tax benefits – particularly for higher rate taxpayers.
But if you're a relatively inexperienced investor you may feel more comfortable with a standard stocks and shares ISA where your investment is overseen on your behalf by a professional fund manager.
You'll still benefit from the tax-free ISA wrapper and gains in the stock market, but won't have to actively engage with your finances as much.
What are the alternatives to a self-select ISA?
If you want to invest in the stock market, the main alternative to a self-select ISA is a managed stocks and shares ISA. A professional manager (or robo-advisor) picks and balances your investments, tailored to your risk profile.
If you don’t want to invest in the stock market, you might want to open:
Fixed rate cash ISA. These are much like cash savings accounts and aren't linked to the stock market in any way. You get a fixed return but your money is tied up for a set period
Easy access cash ISA: These operate similarly to a fixed-rate ISA, but you can withdraw money during the term. The other key difference is the interest rate is variable
If you are saving for a house or retirement, you should consider:
Lifetime ISA. These are designed to help you save for a first home or retirement. You can save up to £4,000 a year and qualify for a 25% bonus from the government (max £1,000 a year).
If you have children, you can open a Junior ISA for each child.
Keen to find out more? Take a look at our comprehensive guide to ISAs.
Other useful guides
We have a range of detailed guides with information for savers and investors. Find out more:
Frequently asked questions
Can I pick my own stocks in an ISA?
Yes, if you opt for a self-select ISA you can choose which investment funds, unit trusts and stocks and shares you invest in.
Can you hold shares in an ISA?
Yes, you can hold individual company shares in a stocks and shares ISA and in a self-select ISA.
How many self-select ISAs can I have open?
A self-select ISA is a type of stocks and shares ISA. You can open as many as you like in a single tax year, subject to the £20,000 annual subscription limit.
How much money can I put into a self-select ISA?
You can put up to £20,000 in multiple self-select ISAs in any tax year. This is the total annual ISA allowance.
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