Important information - The value of your investments may go down as well as up. You may not get back all the money that you invest. If you are unsure about the suitability of a Stocks and Shares ISA, you should seek advice from an authorised financial advisor. Tax treatment depends on your individual circumstances and may be subject to change in the future.
What is a Stocks and Shares ISA?
A Stocks and Shares ISA, also known as a Self-Select ISA or Investment ISA, is a savings account that lets you invest your money and avoid paying UK income or capital gains tax.
Once you've opened an account, you can choose to invest in funds, shares, bonds, and other types of investments. You can withdraw your money whenever you need to, and you can contribute up to £20,000 a year - this is the maximum ISA annual allowance.
Get your ISA cashback offer
New customers who open an ISA and start a transfer of, or deposit, £2,000 or more before 29 February 2024 will receive a £100 to £1,500 cashback payment.
Once the transfer is complete and additional terms have been met, we'll pay your cashback into your Trading Account. Once you've opened an ISA, a Trading Account can be added for free.
Simply open an account to get started. Cashback paid after 12 months. Terms apply.
A cashback offer that won't be eaten up in high % fees
When it comes to investing, you need to keep your iis peeled. Generous cashback sign-up offers might look nice, but how good a deal are you actually getting?
Most investment platforms hit you with percentage fees – the more you make, the more they take. When you take that into account, how good is the cashback offer, really?
At ii, our flat fees mean you have greater control of your finances and pay the same amount every month. You deserve a cashback offer with low, flat, fair fees. Anything else just doesn’t add up.
Benefits of a Stocks and Shares ISA
- Tax benefits: You won’t pay any capital gains tax on the profits you make when selling stock within your ISA. You also won't pay tax on UK dividends or on income earned on bonds. Learn more about ISA tax benefits.
- It can beat cash: Although not guaranteed, investing in the market has historically driven much greater profit than keeping money in a savings account or a cash ISA.
- Freedom to choose where your money goes: From stocks and shares to funds, trusts, ETFs, government and corporate bonds and more. A stocks and shares ISA lets you access a huge range of investment opportunities. You can even invest in line with your beliefs and values through ethical and sustainable ISA portfolios.
- Inheriting an ISA is easy: Your spouse can inherit your stocks and shares ISA if you pass away, they would receive the value of your account as an additional one-off allowance.
How much can I invest in an ISA?
You can save up to £20,000 every tax year (6 April to 5 April) - this is known as your Annual Allowance.
If you contribute more then you may have to pay tax on your investments.
Tax treatment depends on your individual circumstances and may be subject to change in the future.
Learn more: ISA allowance
How to open a Stocks and Shares ISA
You will need a debit card to confirm your identity and your National Insurance number.
We offer two different plans for Stocks and Shares ISA. When you open an account you will start on our £4.99 a month Investor Essentials plan. Should your investments grow above £50,000, you will move onto our £11.99 a month Investor plan.
£4.99 per month
Invest up to £50,000 with the basics. Includes:
- A Stocks and Shares ISA
- A Trading Account
- Free regular investing
£11.99 per month
Invest over £50,000 on our most popular plan. Includes:
- A Stocks and Shares ISA
- A Trading Account
- As many Junior ISAs as you have children
- A free monthly trade
- Free regular investing
Why choose the ii Stocks and Shares ISA?
- Low, flat fees - these could save you money and help you achieve your goals sooner.
- More opportunities - choose from one of the widest range of investments on the market.
- You're in control - check on your investments any time, anywhere with our secure mobile app.
- We've got your back - our UK-based team is rated 'excellent' on Trustpilot.
- Learn from the best - impartial information from our analysts, including selected funds, ready-made portfolios and our award-winning newsletters.
What our customers say
What you can invest in
How does a stocks and shares ISA work?
- A stocks and shares ISA is a savings account that lets you invest in a wide range of stocks, funds, bonds and other investment products.
- Once opened, simply add money and choose where you want to invest it.
- You can withdraw your money at any time, or keep trading until you reach your goals.
To transfer a stocks and shares ISA, simply ask your new provider to transfer an existing ISA. They will work with your old provider to transfer the funds.
Yes. It's easy to transfer a cash ISA to a stocks and shares ISA.
If you've made contributions to the cash ISA within the current tax year, you'll have to transfer the whole ISA to your new provider.
If you want to keep your tax advantages, you'll need to arrange a transfer - rather than withdrawing the money yourself and opening a new ISA.
It’s free to transfer an ISA to interactive investor. However, your existing provider may charge an exit fee when you leave, so check this before you start.
There are two ways to invest in a stocks and shares ISA:
- Contribute a lump sum: if you have spare cash, or want to maximise your tax-free allowance, then topping-up your ISA means you can stash your money away for a rainy day.
- Drip-feed your money: the 'little and often' approach can be less risky and more profitable. By adding money regularly, you end up buying shares at different prices. When the market goes up, your money buys fewer shares. When the market drops, your money buys more. This is known as pound-cost averaging. Find out more about our free Regular Investing service.
Yes, you can have a cash ISA and a stocks and shares ISA at the same time. You can also contribute to both within the same tax year - though your £20,000 annual allowance covers both accounts.
Opening a Stocks and Shares ISA with ii only takes a few minutes. You will need to have your address, debit card details and National Insurance number ready.
There is no minimum amount needed to invest in a Stocks and Shares ISA. The maximum you can contribute in any given tax year is £20,000.
But remember, this allowance includes all types of ISA. So if you also have a cash ISA, this also counts towards your £20,000 annual allowance.
Yes, you can withdraw your money from an ISA at any time. However, this does not renew your annual contribution allowance. Once you've paid into an ISA, that part of your allowance has been used.
You can open a Stocks and Shares ISA if you are:
- Over 18
- A resident in the UK
If you've already opened a Stocks and Shares ISA with another provider, you can transfer that ISA to ii.
Find out more: Transfer your ISA
Any income made from investments in a stocks and shares ISA can either be reinvested, held as cash, or paid out to your nominated bank account.
The cost of investing in a stocks and shares ISA includes the platform fee and the trading fee. We charge a low, monthly £4.99 for our ISA if you're investing under £50,000 on our Investor Essentials plan. Each trade typically costs £3.99 - however, you can reduce this with our free regular investing service.
Before you invest, consider these questions:
- Do you have any debts? Debt repayment, aside from mortgages, can often carry a high interest rate. It's generally best to focus on reducing your debts before deciding to invest.
- Do you have a rainy day fund? Having savings can protect you against unexpected costs. Once you've got this safety net in place, you'll be in a better place to invest your money.
- Have you thought about your risk tolerance? Risk is an important part of investing. Establishing goals, considering how much you want to invest, and how long you want to be in the market all contribute to how much risk you want to take on.
- Have you done your research? Learning the basics about such things as management fees, dividends, diversification and volatility will help you become a better investor.
- Can you commit to investing over 5 years or more? Over the short term the stock market can be unforgiving. By investing for longer you may be able to ride out anything from general market volatility to larger shocks to the market.
Learn more about our Stocks and Shares ISA
Learn how to make the most of your Stocks and Shares ISA with our useful guides.