Saga Investment ISA

Saga Investment ISA

Opening an investment ISA could be a good alternative to using a cash ISA – although it’s not guaranteed, when you choose investments you could potentially see greater returns than you would in a cash ISA.

A Saga Investment ISA is the tax-efficient way to save and use your £20,000 ISA allowance. You can let the experts look after your investments or manage them yourself.

How does it work?

An ISA is simply an account that you can use to save, but where they differ from other accounts is that they are tax-efficient. You get an allowance that you can use each year and you don’t pay tax on any interest earned on savings. In an investment ISA (also known as a stocks and shares ISA) you don’t pay tax on returns from investments. The 2017/18 ISA allowance is £20,000.

You can open an investment ISA with Saga Investment Services in just a few minutes – investing for the future has never been easier.

How do I invest?

The good news is, you don’t have to pick either one or the other. You are free to invest in both cash and investment ISAs in the same financial year.

The only thing you have to watch out for is that you don’t exceed your total ISA limit in any given tax year. For the 2017/18 tax year, this limit is £20,000.

This limit only applies to the amount you put into your ISA. If, for instance, you put £15,000 of shares into an investment ISA in April and their value grew to £21,000 by November, you would not have exceeded your limit. You could still add an additional £5,000 to your ISA before the end of the tax year. 

Please remember the value of your investments can go down as well as up and any tax relief will depend upon your individual circumstances and may be subject to change.

Summary table

   Investment ISA
 With all providers
Type of return Capital growth and/or income such as dividends or interest
 Capital at risk Yes
 Withdrawals  Available at any time
2017/18 ISA allowance Split the allowance between a cash and investment ISA, as long as the combined amount doesn't exceed £20,000
 With Saga
Fees and charges 0-0.4%
 Returns  Dependent on investment performance
 Open an account  Online or with a postal application form
 Manage your account  Telephone or online

What are the benefits?

  • ISAs are tax-efficient as interest on cash savings or gains from investments are tax-free. Your savings and investments have the opportunity to grow faster over time than they might in a normal savings account.

  • With a Saga Investment ISA, you get the same great value as you’ve come to expect from Saga. Saga Investment Services gives you more for your money so you can put more towards saving, rather than on unnecessary fees.

  • The Saga Investment ISA gives you access to a wide range of investments from across different sectors. If you don’t want to pick investments yourself, you can let the experts handle it for you with a Ready-made Portfolio of top investment ideas.

  • If you would like to open an ISA with Saga Investment Services, it’s quick and easy to start investing right away. You can even transfer an ISA if you have an account with a different provider, cutting down on paperwork.

Frequently asked questions

Who can have an ISA?

Anyone over 18 can open an investment ISA as long as they are a UK resident. Junior ISAs are available for children. A Junior ISA gives a child a £4,128 allowance and allows you to save on their behalf.  Saga Investment Services has a Junior ISA available, too.

Do I have to choose between a cash ISA and an investment ISA?

No. You can have a combination of the two, or just a cash ISA or an investment ISA, up to the 2017/18 allowance limit of £20,000.

Why transfer an ISA?

Transferring old ISA accounts into one can make everything easier to manage. It helps you cut down on paperwork and you may even save on fees. You can transfer an old ISA to the Saga Investment ISA here.

Important Information

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. Past performance is not a guide to future performance. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change. Please note we do not provide tax advice. This website does not provide personal investment advice. If you are in doubt as to the suitability of an investment, we recommend you should seek professional financial advice from Saga Investment Services powered by Tilney. 

SIPPs aren’t suitable for everyone, and if you don’t think you will make use of the wider choice of investments that a SIPP gives you then a SIPP may not be right for you. Investors should review their portfolio regularly or get regulated advice to make sure their SIPP investments continue to meet their pension requirements.

Who are the providers?

Saga Investment Services is powered by Tilney and is an Appointed Representative of Tilney Investment Management Services Limited which is authorised and regulated by the Financial Conduct Authority. Each company is registered in England & Wales.

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Saga Ready-made Portfolios

If you don’t want to choose and manage your own pension or ISA investments yourself, the experts can handle it for you when you open a Ready-made Portfolio.

The Saga SIPP

Making the most of your pension is another tax-efficient way to save. The Saga SIPP (Self-invested Personal Pension) gives you freedom and control over your pension.