If you’re on the search for the very best ISAs fo 2019 and beyond, you might be browsing through a number of traditional banks and building societies to find the best deal. However, did you know that a number of investment brokers are also involved in the space? While in most cases you won’t be able to find a Cash ISA on the table, you will have access to a highly comprehensive Stocks and Shares ISA.
If this sounds like something you want to explore further, then we would suggest reading our in-depth Vanguard ISA Review. Within it, we explore what ISAs the investment house offers, what sort of fees you should expect, and most importantly – how safe your funds are.
Vanguard ISAs: What ISAs are offered?
Vanguard is a global investment broker that allows both retail and institutional clients to buy and sell thousands of financial assets. At the same time, they allow UK investors to shield their capital gains from tax – up to £20,000 per year. As such, you won’t be able to obtain a Cash ISA at the platform that generates a guaranteed rate of return. Nevertheless, below we have outlined the two ISAs available at Vanguard for you to consider.
What is Vanguard?
Vanguard is one of the largest investment houses globally. Launched in 1975, the US-based institution now has over $5 trillion dollars worth of assets under management. Vanguard allows both retail and institution clients to purchase a range of asset classes, which includes traditional stocks and shares, ETFs, and funds. The provider recently entered the UK ISA space, subsequently offering both Stocks and Shares ISAs and Junior ISAs.
Are my funds safe at Vanguard?
Investing your money with Vanguard is as safe as it gets in the online investment space. On top of its many banking licenses, Vanguard is covered by the Financial Services Compensation Scheme (FSCS). This means that were the institution to collapse, you would have your money protected by the UK government. Take note, this only amounts to the first £85,000 held at Vanguard. As such, were you to invest £100,000 at the platform, £15,000 of this figure would not be protected.
On the other hand, you do need to remember the underlying risks of placing your hard-earned money into a Vanguard Stocks and Shares ISA. While Cash ISAs will always guarantee you a long-term rate of return, these guarantees do not exist in the Stocks and Shares ISA arena. The reason for this is that your gains are based on how well your chosen investments perform in the open marketplace. Always bear this in mind.
Can I access my money at any time with a Vanguard ISA?
This will depend on the specific ISA you opt for. If opting for a Stocks and Shares ISA, then you can make a withdrawal at any given time. Alternatively, if opting for a Junior Stocks and Shares ISA, you will only be able to access the funds when your child turns 18. However, you will be able to transfer the funds to another Junior ISA provider at any time.
Does Vanguard offer a Cash ISA?
Vanguard does not offer a conventional Cash ISA. Instead, you'll only be able to invest in a Stocks and Shares ISA or a Junior ISA.
Is it safe to invest with Vanguard?
Yes. Your funds will be covered by the FSCS, meaning that the first £85,000 is protected by the UK government.
How much can I put into a Vanguard ISA?
This depends on the specific ISA you decide to open. If you opt for the Stocks and Shares ISA, then you can place your entire £20,000 allowance in it for 2019/20 tax year. However, if you opt for a Junior Stocks and Shares ISA, then you can only deposit £4,368 in the 2019/20 tax year.
How much does a Vanguard ISA cost?
Vanguard charges 0.15% per year on its ISAs. If you opt for the Junior Stocks and Shares ISA, then the annual fee is capped at £375.
What is the minimum investment that I can put in a Vanguard ISA?
You will either need to invest a lump sum of £500, or commit to a monthly investment of £100.