The Moneyfarm ISA
Flexible, low-cost, and fully managed, the Moneyfarm Stocks and Shares ISA can help you get one step closer to your financial goals. It’s time to say goodbye to negligible returns on cash savings accounts and make your money work harder for you today.
Whether you’re new to investing or a seasoned pro, we’ll match you to a portfolio that’s built and managed by a team of experts specifically for your investor profile.
ISAs allow you to protect and grow your money in a tax-efficient manner. You can invest up to £20,000 in your Moneyfarm ISA each year and you won’t have to pay any tax on your returns. This means you can keep more of your money.
It might be simple, but an ISA could be the key to helping you unlock your family’s future.
What are the benefits of the Moneyfarm ISA?
Keep more of your money
Invest up to £20,000 this year and your money can grow tax free
Reach your goals quicker
Our low fees mean you can keep more of your money, taking you another step closer to your goals
Hassle-free and flexible
Set up an ISA in 10 minutes and get your money out in five working days
Made for you
Our experts build, manage and rebalance your portfolio to keep you on track with your financial goals
Transfer for free
Rest assured, Moneyfarm will never charge you a transfer fee
See what you’re invested in, how you’re performing and how much you’re paying – anywhere, any time
Financial advice at your fingertips
Most people want two things when they invest; protect the value of their money from inflation and grow it to achieve their financial goals.
But when it comes to managing your family’s money, the financial markets can be a daunting place. Why spend all your free time agonising over the best fund, and moment to trade, when the experts can do it for you?
At Moneyfarm, we do the hard work for you. We match you to an investor profile based on what you’re investing for, when you’ll want your money and your attitude to risk. You’re then paired with a portfolio that’s built and managed specifically for your investor profile. It’s as simple as that.
You can invest up to £20,000 a year and all of your profit, whether it’s capital growth or income, will grow tax free.
We know family life is rarely smooth sailing, that’s why the Moneyfarm Stocks and Shares ISA is built to be flexible, easy to manage and hassle-free.
Investing is personal. Don’t follow the crowd, let us help you get one step closer to your financial goals, your way.
What is an ISA?
The Individual Savings Account, or ISA for short, helps savers grow their money in a simple and tax-efficient way over time.
When you save or invest your money, you may be expected to pay tax on your returns. The main benefit of an ISA is that you can grow your money tax-free.
When you invest in a stocks and shares ISA, you won’t pay tax on your profit if your investments increase in value. Any income you get from dividends and bonds will be safe from the tax man.
You can either keep your savings in a cash ISA or invest through a stocks and shares ISA, and any returns will be tax-free. There are a number of different varieties of ISAs under these categories.
You can learn more about ISAs on our blog.
What is an ISA allowance?
The ISA allowance rose to £20,000 in April 2017. This means you can put up to £20,000 in your ISA each year, and any income or growth in the value of your investment will be protected from tax.
It’s a personal allowance, so couples can invest up to £40,000 in their ISA each year to benefit from the generous tax relief. Over time, these benefits will add up and your stocks and shares ISA could be a welcome addition to your pension.
You don’t have to use all of your £20,000 ISA allowance, just what you’re comfortable with. It’s important to remember that you can’t roll your allowance on into the next year, however, so it’s a case of use it or lose it.
You can spread your £20,000 allowance between the different ISAs, however you can only open one of each in a single tax year.
The 2018/19 financial year runs from 6 April 2018 to 5 April 2019, don’t miss out!
You don’t have to use all of your £20,000 ISA allowance, just what you’re comfortable with.
When should you use your allowance?
Time will be your greatest friend when you invest. The earlier you start investing in a stocks and shares ISA, the longer your money can stay invested and look to benefit from market movements. This means you have longer to benefit from tax-free returns.
The longer you have, the more risk you can take with your investments. This means you can expect higher returns – although investments can go down as well as up. A longer time horizon will give your money longer to recover.
Don’t worry, you don’t need to invest it all at once! Adopting a little and often strategy can actually help smooth out fluctuations in an asset price, bringing down the average price you pay for your investments.
Why is a stocks and shares ISA important?
A stocks and shares ISA can help protect your money from inflation and grow it for the family milestones ahead of you. On top of this, any money is protected in a tax-free wrapper. However, financial markets can fluctuate, which is why the Moneyfarm ISA will invest your money in a diverse range of stocks and shares.
The stocks and shares ISA is often compared to the cash ISA, both play an important role in a financial portfolio, but cater to different goals. Cash savings are not exposed to short-term fluctuations on the stock market, so can work well for near-term goals. But with interest rates where they are and inflation on the rise, there’s a risk that your savings could be worth less in the future.
A stocks and shares ISA is often used for goals five or more years away. As markets move down as well as up there’s an opportunity to grow your investment, and often this can help to protect from inflation risk. At Moneyfarm we build portfolios with a range of assets based on your investor profile and time horizon to ensure you’re comfortable with any losses, whilst also aiming to deliver long-term returns.
How much will your Moneyfarm ISA cost?
We keep costs low and simple, so you keep more of your returns. You’ll only ever be charged two fees; the management fee and fund fee.
We charge 0.70% management fee on your first £20,000, 0.60% on anything between £20,000 and £100,000, and 0.50% on anything between £100,000 and £500,000. We then charge 0.40% on anything above £500,000. ETF fees average 0.30%.
Our transparent pricing structure means you always know what you’re being charged and what for.
Find out how much you could be charged with our interactive model, on our pricing page.
How to transfer your ISA to Moneyfarm
If you’re stuck saving in a cash ISA, it can be disheartening seeing the savings pot you’ve built up over decades lose value due to inflation. The good news is that you don’t just have to accept this as a fact of life.
Transferring to Moneyfarm is simple. This is all you need to do:
We’ll talk to your existing provider, get your account closed, and move your ISA over to your ISA account. It’s really important you transfer your ISA properly, and don’t try and move the money yourself. You’ll lose all your allowance and tax benefits once you remove your money from your tax wrapper.
It’s possible to transfer both cash ISAs and stocks and shares ISAs into an account of either type.
What is an ISA?
An Individual Savings Account is a form of tax-free wrapper that allows you to protect and grow your money for the future. Whether you want to save or invest your money, there is an ISA for you, with cash ISAs and stocks and shares ISAs the two main types. You can only pay into one of each type in each tax year, but you can open a new ISA with a different provider each year if you want to.
What are the benefits of opening a stocks and shares ISA?
You can invest up to £20,000 each year, and any returns will grow tax free – whether it’s income or any profit you could make when you sell your investments.
The Moneyfarm ISA has additional benefits that suit busy families. We match you to a portfolio that’s built and managed for your investor profile. We offer a range of low-cost, flexible and transparent portfolios to help you get a step closer to your financial goals.
How much is the ISA allowance?
The tax year runs from 6 April until 5 April the following year, when the ISA allowance automatically refreshes. The government has the power to change the ISA allowance each year if it wishes.
This tax year you can put up to £20,000 in your ISA.
Tax year 2018/19 – £20,000
Tax year 2017/18 – £20,000
Tax year 2016/17 – £15,240
Tax year 2015/16 – £15,000.
You can pay your whole allowance of £20,000 into a stocks and shares ISA, a cash ISA, or a combination of the two. Even if you have a cash ISA elsewhere, you can still open a Stocks and Shares ISA with Moneyfarm. You can choose between making a lump sum investment, and/or making regular contributions throughout the tax year. The ISA is flexible to suit you. Your annual ISA allowance expires at the end of the tax year and any unused allowance will be lost. It’s a case of ‘use it or lose it’, as your allowance can’t be rolled into the next year. With Moneyfarm, you can invest more than the ISA allowance, but any investments outside the wrapper threshold won’t be sheltered from tax.
What happens to any income from my investments in a stocks and shares ISA?
Your investments can generate tax-free income if they’re within your ISA wrapper.
Are there any tax benefits to opening an ISA?
There area generous tax benefits to be had by opening an ISA. You can invest up to £20,000 each year, and any income or capital growth can build up tax-free. Normally, you may be liable to pay tax if your profits are above the annual capital gains tax allowance (£11,700 for the 2018/19 financial year) when you sell your investments.
Investments that pay interest (e.g. government and corporate bonds), or rental income (such as some property funds) provide 100% tax-free income if held within an ISA and therefore offer tax benefits for everyone.
Outside of an ISA, you don’t pay tax on the first £5,000 of dividends you get in the tax year. Above this allowance, you pay tax of 7.5-38.1%, depending on your income tax band. Dividends that fall within your personal allowance don’t count towards your £5,000 allowance. The tax treatment of a Moneyfarm Stocks and Shares ISA depends on your individual circumstances and may be subject to change in the future.
Can I withdraw from my ISA?
You can take money out of your Moneyfarm ISA whenever you want, without it impacting your ISA allowance for that year. From 6 April 2016, you’ve been able to withdraw and deposit money into your ISA without losing your allowance, as long as you put it back in the same tax year.
What do I need to open an ISA?
To open a stocks and shares ISA you must be at least 18 years old and a UK resident for tax purposes. To set up an ISA you’ll need your National Insurance number to hand.