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Types of ISA

Get to know the main types of ISA

  • Stocks and Shares ISA

    Any capital gains and dividends derived from investments in a Stocks and Shares ISA are free from capital gains tax and income tax.

  • Lifetime ISA

    Available for those aged 18-39, you can invest up to £4,000 per year and the government will add a 25% bonus up to a maximum of £1,000.

  • Cash ISA

    With a cash ISA, you'll pay no income tax on interest earned from your savings. Interest rates in a cash ISA are, on average, 1-2% per annum.

What is a Stocks and Shares ISA?

Individual Savings Accounts (ISAs) are savings accounts, introduced by the government, to help people save in a tax-efficient way.

There are two main choices - a cash ISA and a Stocks and Shares ISA. EQi does not offer a cash ISA but does offer a flexible Stocks and Shares ISA, and in addition, a Lifetime ISA (LISA).

Both allow you to invest in shares, bonds, trusts and funds or pick a basket of ready-made investments.

It is worth noting that you can access money in our Stocks and Shares ISA at any time, but with a LISA there are penalty fees unless your withdrawal is related to permitted events (buying a first property or at age 60). That’s because when the government introduced LISAs, they were designed to help people build a pot of money to get on the property ladder or save for their retirement.

  • How does a cash ISA differ from a Stocks and Shares ISA?

    A cash ISA offers savings free from income tax. Your money is not at risk except from the impact of inflation. With savings rates low and inflation higher than those rates, the value of your money erodes over time.

    You can seek better returns by investing with a Stocks and Shares ISA. Although there are no guarantees, over the long-term, stocks and shares have shown to perform better than cash.

  • WHY EQI?

    Stocks and Shares ISA

    Our ISA is flexible, meaning you have the freedom to withdraw money, and pay it back in the same tax year, without it counting against your annual £20,000 allowance.

  • WHY EQI?

    Lifetime ISA

    Put your money to work with a Lifetime ISA. Open to those aged 18 to 39, you'll receive a 25% government bonus up to £1,000 per annum.

  • The best of both worlds

    You can divide your annual £20,000 allowance between different types of ISA.

    Example A

    You can invest £16,000 in a stocks and shares ISA and £4,000 in a LISA each year.

    Example B

    You can put £6,000 into a cash ISA, invest £10,000 in a stocks and shares ISA and invest another £4,000 in a LISA each year.

    To help you decide which ISA will be the best fit for your plans, view the table below for what to consider.

How do ISAs compare?

  • WHY EQI?

    The EQi Flexible ISA

    Learn more about the benefits of our flexible ISA

  • EQI EXPLAINS

    How to invest in an ISA

    Make the most of your annual £20,000 allowance

  • EQI EXPLAINS

    Tax and ISAs

    Learn why ISAs are one of the most tax-efficient ways to invest

  • INSIGHTS

    Tips from an ISA Millionaire

    How one EQi customer has built an ISA portfolio worth over £1 million