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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

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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 Christian Mather

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



Answered by

Christian Mather

Financial Advisor

Working for myself has allowed me to focus on my family and create the life I want for myself, more importantly it allows me to help you to do the same.