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    • Home • Advice • Common questions

    Is it better to invest all the money in one Company's ISA or spread the money across a number of companies?

    08 February 2022

    Question by Keith

    Hi, I am looking to invest 20k in the current financial year and a further 20k in the next financial year. Is it better to invest all in one Company's ISA or spread the money across a number of companies?

    Answered by

    Hi Keith,

    Good question and one many will be thinking about this time of year.

    There are 2 main types of ISA to consider here:

    1. Cash ISA – you are making a cash deposit and receiving fixed interest on your saving
    2. Stocks & Shares ISA – you are making an investment in the hope it will go up over the long term

    In the case of cash ISA’s, I would suggest looking for the best rate and going with that, you will probably need to review yearly and be prepared to move it to continue getting the best rate.

    If you go down the Stocks and Shares ISA route, I suggest using one company. You don’t want to be managing investments across multiple companies.

    From the point of view of safety, you are covered for £85,000 per company by the Financial Services Compensation Scheme (FSCS). This is in the case something happens to the company holding your money.

    Hope this helps

    Thanks

    Christian

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    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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