How to find the best stocks and shares ISA

Stocks and shares ISAs allow you to invest with any returns shielded from the taxman.

But, to make the most of your investments, it's important you pick one that is right for your needs.

Many savers remain cautious about investing and households are holding onto record amounts in cash, but more people are looking at investing for the first time.

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Last month, the government also launched a new campaign, fronted by a savvy squirrel, to help first time investors.

The average stocks and shares ISA fund grew by 11.2% in the year to February 2026, while the average cash ISA rate returned 3.5% over the same period, according to data firm Moneyfacts.

If you are looking to open a stocks and share ISA, here’s everything you need to know to get started and pick the right one for you.

What is a stocks and shares ISA?

A stocks and shares ISA allows you to invest in shares, funds, investment trusts and bonds with no tax on any gains or income from assets held in the account.

Everyone over the age of 18 who is a UK resident for tax purposes can open a stocks and shares ISA and invest up to £20,000 each tax year (6 April to 5 April) in it. You can hold different types of ISAs, as long as you do not exceed the £20,000 allowance in total.

For example, if you’ve added £10,000 to a cash ISA in the 2026/27 tax year, you can only put up to £10,000 into a stocks and shares ISA.

Should you open a stocks and shares ISA?

If you’re considering opening a stocks and shares ISA, make sure you are doing it for the long term, as investment can take time to grow.

Alice Haine, personal finance analyst at Bestinvest, says: “A stocks and shares ISA is more appropriate for those with long-term financial goals, such as saving for a child’s education or supplementing retirement income.

“This is because when you are investing in the financial markets, you typically need a time horizon of at least five years to give your portfolio enough time to ride out any short-term volatility.”

How to find the best stocks and shares ISA

Once you’ve decided on your investment goal and time horizon, you can start looking at whether you want to do the investment picking for your stocks and shares ISA yourself or get a fund manager to do it for you.

DIY investing vs ready-made portfolios

DIY investing requires a more hands-on approach and you’ll need to spend some time researching and selecting assets that match your attitude to risk.

If you are starting out, most platforms have a list of funds that they suggest are good for beginners, so you can pick from that list if you want ideas.

Every month, MoneyWeek also looks at the top funds, stocks and trusts DIY investors are pumping their money into.

You'll be able to build your own portfolio, typically choosing from individual shares, funds, bonds, ETFs, and investment trusts.

AJ Bell, Hargreaves Lansdown, and Bestinvest are some examples of DIY investment platforms where you can build your own stocks and shares ISA.

Some platforms, typically robo-advisers, provide you with ready-made portfolios. You will be asked a few questions to determine your attitude to risk and then placed into a matched portfolio.

Unlike DIY investing, your choice is limited as you do not get to pick your investments. So, if you want specific funds or stocks, then pick an ISA with a platform that lets you decide on your investments. But, if you want to take a more hands-off approach, a robo-adviser may be for you.

Wealthify and Moneyfarm are examples of investment platforms offering a robo-advisor service.

Compare ISA providers

As well as knowing how you want to invest, it’s also important to look at fees.

We look at the fees and charges of some of the most popular DIY and managed stocks and shares ISAs platforms.

Figures correct as of 13 May 2026

The above figures are annual platform fees and there are other investment costs to consider. You can see what the costs are and what platform might be best for you by using this Boring Money tool.

What’s the minimum amount I can invest in a stocks and shares ISA?

Most stocks and shares ISAs have minimum deposit amounts to open them, but some are fairly low.

Bestinvest’s stocks and shares ISA has a minimum initial deposit of £50, for example. You can open a stocks and shares ISA with Hargreaves Lansdown from £100 or with a direct debit from £25 per month. Fidelity starts at £1,000.

You don’t have to deposit lump sums to invest in an ISA, and can instead make regular contributions either on an ad hoc basis or through regular deposits – such as on a monthly or quarterly basis.

A simple way to do this is to set up regular savings using a standing order. Someone wanting to maximise their ISA allowance in full could set up a monthly direct debit of £1,666, which adds up to just under £20,000 over the course of 12 months.

We look at lump sum vs regular investing in a separate piece.

Bestinvest’s Haine says: “By investing every month, investors benefit from pound‑cost averaging.

“Rather than committing a lump sum at a single price point — such as during a perceived dip — they buy smaller amounts at regular intervals, regardless of the market level at the time. This helps cushion the impact of volatility over the short to medium term.”

How can I withdraw from a stocks and shares ISA?

To withdraw from a stocks and shares ISA, you need to sell down your investments. This process usually takes three to seven days and is easy to do online via your investment platform or using your provider’s app.

But remember not all stocks and shares ISAs allow “flexible withdrawals”.

What are flexible withdrawals?

A flexible withdrawal means you can withdraw money from the ISA and then return that cash to the ISA without it impacting the current year’s £20,000 allowance.

“Flexible withdrawals'' can be returned within the same tax year and they can only go back into the same flexible ISA they were withdrawn from – not another ISA, even if that ISA is also flexible.

When an ISA isn’t flexible, any withdrawals you make won’t be added back to your annual allowance and you effectively lose that part of your allowance.

Do note, some investment platforms class ISA fees as withdrawals which can chip away at your annual allowance.

However, some will also let you replenish a flexible ISA by the amount of fees they have deducted throughout the tax year.

For someone with a £500k ISA paying 1% in annual fees, that could mean adding back £5,000 at the end of the tax year – effectively restoring a quarter of the annual ISA allowance.

Are stocks and shares ISAs worth it?

Stocks and shares ISAs provide a number of benefits that make them worth considering for investors, or savers who want to become investors.

They can offer a route to generate more than a cash ISA, although capital is at risk with investing.

There are also tax benefits. Filing a self-assessment tax return can be a cumbersome process, particularly if you need to add in investment income or capital gains – which can be quite laborious to calculate.

With income or gains on investments held within an ISA totally tax-free, there’s no need to declare it on a return, making the process that little bit simpler.