Which types of ISA does InvestEngine offer?

When looking to grow your wealth, an Individual Savings Account (ISA) is a good, tax-efficient way to start.

ISAs let you invest without paying tax on the interest or returns gained. With InvestEngine, you can do this simply, affordably and with a strategy that suits your needs.

Our focus is on helping you build long-term wealth through low-cost diversified investing. We currently offer one type of ISA, which is built around exchange-traded funds (ETFs): our Stocks & Shares ISA.

In this article, we’ll explore everything you need to know about the different types of ISAs and why we offer a Stocks & Shares ISA.

What is a Stocks & Shares ISA?

A Stocks & Shares ISA is a type of investment account. You can invest up to £20,000 per year and pay absolutely no Income Tax or Capital Gains Tax on any returns you make.

Within a Stocks & Shares ISA, you can invest in a number of different assets, like shares in companies, bonds, or exchange-traded funds (ETFs). With InvestEngine, we make this simple by offering DIY portfolios where you can pick and choose which ETFs you want to invest in.

InvestEngine’s Stocks & Shares ISA: Key features

We’ve built our InvestEngine Stocks & Shares ISA with the long-term investor in mind. Those who want flexibility and great value, without compromising on the range of choice, may benefit from these key features:

Unbeatable value

No platform fees: InvestEngine charges no trading fees, platform fees or withdrawal fees for investing in ETFs – other platforms may charge these. Remember, ETF costs do apply wherever you invest – this is what TER means.

We believe in keeping costs low so more of your money stays invested and has the potential to grow through compound interest.

Flexible ISA wrapper

Our Stocks & Shares ISA is flexible. This means you can withdraw money and replace it within the same tax year as many times as you want, without it affecting your £20,000 tax-free allowance.

For example, if you’ve invested £12,000 and later withdraw £5,000, you can still reinvest that £5,000 within the same tax year, Your remaining allowance will stay at £8,000, not £3,000.

This flexibility gives you more control over your own cash, whether you need access to funds temporarily or you want to adjust your investments later on in the tax year, we’ll support you.

Remember, staying invested in the long-term will give you more chances of navigating short-term market turbulence. But a flexible Stocks & Shares ISA offers you peace of mind that your money is easily accessible.

Fully automated investing

With a Savings Plan, you can automate your investments monthly from as little as £20.

Once you have set up your DIY portfolio and have chosen the ratio to allocate funds to, you can set up automatic payments. Your contributions are instant, flexible, and fully integrated with AutoInvest.

This “set-and-forget” approach makes it easier to stay consistent with your investing goals and use your ISA allowance throughout the year. We’ll automatically invest your cash based on the portfolio you build when you set it up.

By automating your investments to be bought at regular moments throughout the year, you’ll aim to smoothly ride out market ups and downs – this is called pound-cost averaging.

What types of ISAs does InvestEngine not offer?

At the moment, we don’t offer other some types of ISA, such as:

Cash ISAs – These work more like savings accounts and don’t provide the same long-term growth potential as investing in ETFs.
Lifetime ISAs (LISAs) – Designed for buying your first home or saving for retirement, but with restrictions and withdrawal penalties that make them less flexible for general investing. Alternatively, we do offer self-invested personal pensions (SIPPs), designed specifically for retirement.
Junior ISAs (JISAs) – Intended for saving on behalf of children under 18.

Our focus is on helping adult UK residents invest tax-efficiently for the long-term, through diversified investment portfolios. However, we’re always looking at ways we can improve your investing experience. You can keep an eye on our product updates on our community page.

Why does InvestEngine focus on Stocks & Shares ISAs?

InvestEngine’s mission is to make long-term investing simple, transparent, and accessible. Stocks & Shares ISAs fit perfectly with that purpose. They offer:

1. Tax efficiency

All growth and income within your ISA is free from Capital Gains Tax and Income Tax, making it one of the most tax-efficient ways to invest in the UK.

2. Diversification

We specialise in ETFs, which means your ISA can easily include investments across global markets, industries, and asset classes. Diversification can help reduce risk while capturing growth opportunities.

3. Accessibility

With fractional investing and no trading commissions, you can start investing with as little as £100, or set up a regular Savings Plan from £20 a month. You don’t need a large lump sum to start growing your wealth at a pace that feels comfortable to you.

4. Control and flexibility

The InvestEngine platform gives you full visibility and control over your portfolio. You can buy, sell, or rebalance your investments at any time, and track performance easily through the app or desktop dashboard. You can see exactly what companies or sectors you’re invested in, if they’re environmentally conscious, and more.

5. Support and education

InvestEngine offers a dedicated Education Series, expert support from our customer experience team, plenty of easily digestible articles, and a growing community forum where you can learn more about investing and share ideas.

We’re committed to lowering the barriers to investing and helping you understand personal finance.

How to open an InvestEngine ISA

Opening an ISA portfolio with InvestEngine takes just a few minutes:

Create an account: Visit https://investengine.com/create-account/ to sign up.
Select a DIY portfolio: Choose the ETFs you’d like to invest in
Start investing: Invest a lump sum or set up a regular Savings Plan to automate your contributions.

Transfers from other providers such as AJ Bell and Hargreaves Lansdown are also straightforward. Our ISAs are flexible and commission-free, so moving your investments could help simplify your finances and reduce fees. Just make sure you don’t withdraw ISA funds yourself, as that can affect your tax-free status.

InvestEngine accepts transfers into our Stocks & Shares ISA from:

Cash ISAs: from banks, building societies, and savings providers
Stocks & Shares ISAs: from brokers, robo-advisers, and other platforms
Innovative Finance ISAs: if the provider allows a transfer into a Stocks & Shares ISA
Lifetime ISAs (LISAs): only the portion of a LISA that has been converted into a standard Stocks & Shares ISA (some providers allow this)
Flexible ISAs: We support transfers from flexible ISAs and preserve any flexible entitlement where the sending provider passes this across

You can transfer either the full balance, or a partial balance from previous tax years. If you’re transferring from the current tax year, the full amount must usually be transferred.

We don’t currently accept transfers from:

Junior ISAs (JISAs): We don’t offer a JISA product
Lifetime ISAs (LISAs): Unless converted by your provider to a standard Stocks & Shares ISA
Help to Buy ISAs: These cannot be transferred into a Stocks & Shares ISA
ISAs that contain unsupported assets (e.g. commercial property, direct bonds)

If you’re unsure about your current provider or ISA type, check your latest statement or get in touch with them directly.

Key takeaways

At InvestEngine, we believe in making investing as straightforward and rewarding as possible. Through a Stocks & Shares ISA, we focus on helping adult UK residents invest tax-efficiently for the long-term, through diversified investment portfolios.

Our Stocks & Shares ISA offers a flexible, low-cost way to invest for the future, with no trading fees, access to hundreds of ETFs, and automated tools to keep you on track.

FAQs on the types of ISAs InvestEngine offers

1. What types of ISAs does InvestEngine offer? InvestEngine currently offers one main type of ISA: a Stocks & Shares ISA. This allows UK investors to grow their wealth through low-cost, tax-efficient investing in exchange-traded funds (ETFs). You can invest up to £20,000 per tax year without paying Income Tax or Capital Gains Tax on your returns.

2. Why does InvestEngine only offer a Stocks & Shares ISA? InvestEngine focuses on long-term, diversified investing through ETFs. A Stocks & Shares ISA fits this approach because it offers greater growth potential than Cash ISAs, flexibility, and tax efficiency. Other ISAs, such as Lifetime or Junior ISAs, are designed for different goals and often come with restrictions or penalties.

3. How much does an InvestEngine Stocks & Shares ISA cost? There are no platform or trading fees on InvestEngine ISAs. DIY investors can buy and sell ETFs commission-free, (ETF costs do apply). Keeping costs low helps your investments compound more efficiently over time.

4. What makes the InvestEngine ISA flexible? InvestEngine offers a flexible Stocks & Shares ISA, meaning you can withdraw and replace funds within the same tax year without losing your ISA allowance.

5. Can I automate my investing with an InvestEngine ISA? Yes. You can set up Savings Plans to automate your ISA contributions monthly. Combined with AutoInvest, your money is automatically allocated into your chosen ETFs, making it easy to stay consistent and potentially benefit from pound-cost averaging over time.

6. What can I invest in through an InvestEngine Stocks & Shares ISA? With InvestEngine, you invest exclusively in exchange-traded funds (ETFs). These funds offer diversified exposure to global markets, sectors, and asset classes. You can either build your own DIY portfolio based on your comfort zone and goals.

7. Does InvestEngine offer Cash ISAs, Lifetime ISAs or Junior ISAs? No. InvestEngine currently does not offer Cash ISAs, Lifetime ISAs (LISAs), or Junior ISAs (JISAs). The platform focuses solely on investment-based accounts that align with long-term wealth building for adult UK residents – including Stocks & Shares ISAs, SIPPs (Self-Invested Personal Pensions), General Investment Accounts (GIAs) and Business Accounts.

8. How do I open an InvestEngine ISA account? Go to investengine.com/create-account. Select a DIY portfolio. Start investing with as little as £100, or set up a regular Savings Plan from £20 a month. You can also transfer an existing ISA from another provider without losing your tax-free status.

9. Who can open a Stocks & Shares ISA with InvestEngine? You must be an adult UK resident aged 18 or over to open an InvestEngine Stocks & Shares ISA. The ISA is available to individuals only and is designed for people looking to invest for the medium to long term, typically five years or more.

10. What are the risks of investing through a Stocks & Shares ISA? All investing involves risk. With InvestEngine’s Stocks & Shares ISA, your capital is at risk and the value of your portfolio can go down as well as up. You may get back less than you invest. ETF costs apply, and tax rules may change depending on personal circumstances. However, diversification through ETFs helps manage risk over the long term.

Important information

Capital at risk. The value of your investments can go down as well as up, and you may get back less than you put in.

Tax treatment depends on individual circumstances and is subject to change. ETF costs also apply.

ISA transfers may have implications for your investments. Please consider all factors before deciding to transfer

This content is for information only and is not financial advice. If in doubt you may wish to consult a professional adviser for guidance.