Frequently asked questions
What is an ISA?
An ISA is an Individual Savings Account. It works like a normal savings account, except you don’t pay any UK income or capital gains tax.
Different types of ISAs offer various ways to save and invest.
A Cash ISA or a Junior Cash ISA is for saving cash only, without investing.
With a Stocks and Shares ISA you can buy shares, funds and other types of investments. You can do this on behalf of a child in a Junior Stocks and Shares ISA.
An Innovative Finance ISA is for investments such as peer-to-peer lending.
A Lifetime ISA is for saving for your first home or retirement, and can be used to hold cash, shares, funds and other investments. You can only open one if you’re between 18 and 39 years old.
You can have a Stocks and Shares ISA, Junior Stocks and Shares ISA, and a Lifetime ISA with us.
What is a portfolio?
A portfolio is a collection of investments. It can include a mix of shares, funds, and other investments.
With an HL Stocks and Shares ISA, you can make your own portfolio by adding shares, funds and other investments to your ISA.
Or you can choose a ready-made portfolio to put into your ISA, and leave the choice of investments to us. You'll just need to keep an eye on it to make sure it's still right for you over time.
What is the ISA allowance?
Each tax year (6 April to 5 April), there’s a limited amount of money you can put in an ISA. This limit is set by the government and is called the ISA allowance.
In the 2017-2018 tax year, the allowance is £20,000.
You can split the ISA allowance across different types of ISAs, but you can only add money to one ISA of each type in a tax year. Lifetime ISAs work differently - please see our Lifetime ISA section to learn more.
It’s a good idea to use as much of the ISA allowance as you can, because that way you’ll be making the most of the ISA tax break for your money.
The deadline for adding money to your ISA each tax year is midnight 5 April.
Tax rules can change and their benefits depend on your circumstances.
Opening an ISA
What’s the minimum I need to open an HL Stocks and Shares ISA?
You can open an ISA with us from £100 or with a Direct Debit from £25 per month.
How do I open an ISA with investments I already have?
Opening an account with investments you already have means selling them, moving the cash to your new account, and buying your investments back. This process is called Bed and ISA.
How do I open an ISA with cash from my HL Fund and Share Account?
The fastest way to open an ISA using cash from your Fund and Share Account is online. Please read the key features and terms and conditions (including tariff of charges) first.
- Log in to your Fund and Share Account.
- Select the 'Cash' tab.
- Select ‘Transfer Money’ in the quick links on the right of the screen.
You can also do this over the phone or by post.
How do I set up a Direct Debit for my ISA?
You can set up a Direct Debit for your ISA from £25 a month. Direct Debits can go into funds, FTSE 350 shares, and selected investment trusts and exchange-traded funds (ETFs).
To get started, log in to your account and select the ‘Monthly Savings’ tab.
Direct Debit payments will leave your bank account on the 7th of each month (or the next working day), and be invested on the 10th (or the next working day).
Can I open an ISA for someone else?
You can't open a Stocks and Shares ISA for someone else. But you can open a Junior ISA for a child under 18 if you're their parent or guardian. Anyone can gift money into an HL Junior Stocks and Shares ISA.
Managing your ISA
How to add money to your ISA
You can add money to your ISA if you have unused ISA allowance remaining this tax year. Please read the key features and terms and conditions (including tariff of charges) first.
The quickest way to add money to your ISA is online or with the HL app.
- Log in to your account with the HL app or online
- Under ‘Actions’, choose ‘Top up’
- Follow the instructions to add money with your debit card
How to withdraw money from your ISA
Although Stocks and Shares ISAs are designed for long-term investing, there are times you might want to withdraw money from your ISA. You can do this at any time. There's no charge, though there may be charges for selling some investments, depending on which you hold.
Just remember that if you take money out of your HL Stocks and Shares ISA, you’ll lose that portion of your ISA allowance.
The most you can withdraw in a day is £99,999.
Nominate a bank account
Before you withdraw money, we need to know which bank account to send your money to. So if you haven’t already, you’ll need to nominate a bank account.
- Log in to your account and go to the ‘Account settings’ tab
- Choose the ‘Withdrawal, income and loyalty bonus’ tab on the left and follow the instructions
Withdraw money online
- Log in and go to the ‘Cash’ section of your Stocks and Shares ISA
- Choose 'Withdraw money' from the quick links box and follow the instructions
Withdraw money with the HL app
- Select the blue 'My accounts' icon at the bottom left of the screen and follow the instructions on the screen to log in
- Choose your HL Stocks and Shares ISA
- Select the 'Action' menu, choose 'Withdraw money' and follow the instructions
You can also request a withdrawal by calling us on 0117 980 9801 or posting a Cash Withdrawal Form to Freepost HARGREAVES LANSDOWN.
How long will it take?
If you’re selling investments first, the trade will need to settle before you can withdraw cash. This usually takes about two working days for shares and four for funds. Then we’ll send your money using Faster Payments.
What happens to any income from investments in my ISA?
You can decide what happens to any income your investments make.
Reinvest your income
With this option, any income will automatically be used to buy more of your investments once it reaches £10 per holding. If you’d like, you can choose your own reinvestment level between £10 and £1,000. Reinvestments are made between the 11th and 21st of each month, and a 1% charge applies (up to £10).
Send income to your bank account
If you’d like any income paid into your bank account, we’ll send it within the first ten working days of each month. You’ll need to nominate a bank account first so we know where to send your money.
Keep your income in your ISA as cash
Your income will stay in your account as cash with this option. You can use the cash to pay charges, or reinvest it yourself when you choose.
Here’s how to change your preferences:
- Log in to your account
- Select the ‘Account settings’ tab at the top right
- Choose the ‘Withdrawals, income and loyalty bonus’ tab
- Choose the ‘Edit income instruction’ option
What is the Additional Permitted Subscription?
If you were married or in a civil partnership with someone who died on or after 3 December 2014, you can apply for extra ISA allowance, called an Additional Permitted Subscription (APS).
Please see the ISA charges page to view all ISA and dealing charges.
Where can I see the charges I owe?
You can view your account charges by logging in to your ISA, choosing the ‘Account Administration’ tab, then selecting ‘View history of fees charged’.
How do I pay charges?
You don’t have to worry about remembering to pay charges, because we’ll take them from your account automatically each month.
We take charges from any cash in your ISA.
How much cash you’ll need depends on the value of your investments. We’ll suggest an amount for you based on your holdings, which you can see in your ISA when you log in. Just look for suggested minimum balance in your account dashboard.
What happens if there's not enough cash in your account
If there’s not enough cash in your ISA to pay charges each month, we’ll take charges from any cash in your HL Fund and Share Account (if you have one). Otherwise we’ll start to sell some of your investments to cover charges.
You can set up an alert and we’ll notify you if there’s not enough cash available.
Paying charges from a different account
If you’d like to always pay your ISA charges from cash in your HL Fund and Share Account, it’s easy to set this up online.
- Log in and go to the 'Account Settings' section of your ISA
- Select the ‘Fee and Minimum Cash Balance’ tab
- Click on 'Fee collection options' and follow the instructions
Transferring to an HL Stocks and Shares ISA
How much of my ISA can I transfer?
Since transferring doesn’t count towards the ISA allowance, you can move as much of your ISA from previous tax years as you like.
However, if you’d like to transfer money you already put into your ISA this tax year, you’ll need to transfer all of this year’s pot.
If you decide to transfer, please just check you won't lose any guarantees and that your current provider won't charge you large exit fees - we'd hate for you to lose money.
How long does it take to transfer?
Usually it takes between four to six weeks, but transferring online is much quicker. We’ll contact your provider for you, and we’ll let you know when your transfer’s complete.
How does transferring affect my ISA allowance?
Transferring does not count towards your ISA allowance, which is £20,000 for the 2017/2018 tax year.