Stocks and Shares ISA

Penn_1969

I'm going to be putting in the maximum amount of £11,520 each year, starting from this tax year. Can someone give me an an idea of the interest this may give me each year.

marathonic

You don't get interest in a Stocks and Shares ISA, you get investment returns - which could be positive or negative....

barak

marathonic wrote: »

You don't get interest in a Stocks and Shares ISA, you get investment returns - which could be positive or negative....

It's true that capital returns in a Stocks and Shares ISA could be positive or negative, but you can receive interest from certain funds that are mainly invested in Corporate Bonds, for instance, and you also then recover the 20% tax that would be deducted outside an ISA.

Penn_1969 - I think you should find out more about ISAs before jumping in! There's some information on this site http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax and plenty more elsewhere.

Hominu

Penn_1969 wrote: »

I'm going to be putting in the maximum amount of £11,520 each year, starting from this tax year. Can someone give me an an idea of the interest this may give me each year.

Anything between -100% (losing your entire investment) and getting well over 100% profit. I've seen some of my investments go up by 75% in a single month (ie, £1000 turned into £1750), but then plummet by 30% the next month. Less risky investments tend to be more smooth and can steadily rise or just flat line, but can still drop in value.

I'd suggest buying a few books before investing if you've never done it before and not investing the whole 11K on a few random companies, but research well.

jimjames

Penn_1969 wrote: »

I'm going to be putting in the maximum amount of £11,520 each year, starting from this tax year. Can someone give me an an idea of the interest this may give me each year.

As per the previous replies you don't get interest but you can get dividends.

If you invest in a UK Equity income fund then you'd be looking at around 4.5% pa income plus any capital gain or loss.

What are you thinking of putting in your S&S ISA?

TDM850

Hi Penn, as per Jim James response, you won't receive interest, but depending on the stocks you select, you could earn a healthy dividend yield. For example, invest £11,520 in blue chip stocks such as Tesco, Vodafone will give you an average dividend yield of 5% - that's a return of £633 pa, which you can either reinvest into stock or leave as cash. Alternatively you could reinvest that yield into a Dual Listed AIM stock. Within current HMRC rules, if an AIM listed stock also has a secondary market listing on an exchange that has been approved as a ‘Recognised Stock Exchange’, that stock can be held within an ISA. AIM stocks are smaller and riskier investments, but can offer significant upside. More info on this here

barak

jimjames wrote: »

As per the previous replies you don't get interest but you can get dividends.

jimjames - I don't understand why you and TDM850 repeat that when it is possible to get interest from some funds. :question:

jimjames

barak wrote: »

jimjames - I don't understand why you and TDM850 repeat that when it is possible to get interest from some funds. :question:

True you can get interest from some bond funds but most funds and shares generate dividends not interest and from the post the OP doesn't appear to know what they are putting inside their ISA wrapper. But the capital value isn't fixed so it is still very different from bank account interest where your capital is guaranteed (to a certain level!).