Featured articles

What is an investment account?

An investment account, often referred to as a ‘General Investment Account’ (GIA) is a flexible, taxable investment account that allows you to invest in a wide range of assets, like equities (company shares), bonds, funds and exchange traded funds (ETFs).

General Investment Account (GIA)

Interest in GIAs has increased over the last few years with the rise of digital investing platforms. These have simplified the process of investing, offering features like:

live share prices on apps;
relatively low fees and commissions;
easy access to a variety of markets beyond UK stocks and indices; and
AI personalised investing guidance.

‍

You can hold multiple GIAs and, unlike ISAs and pensions, there are no limits on contributions or withdrawals. This means you can generally invest and withdraw as much as you like.

While GIAs lack the tax exemptions of ISAs or tax top ups offered by pensions, you can still benefit from the UK’s annual capital gains tax allowance (£3,000 as of 2025) and dividend allowance (£500) in your GIA. Outside of that, you'll also need to consider any taxes that apply. How much tax you pay will depend on your personal tax situation and how much you generate from your investments.

It’s important to remember that, as with all investing, you can lose money. A GIA allows you to buy into a wider range of assets. While this can present more opportunities, it also comes with greater risk.

Investment account fees

The fees you pay can eat into any gains you might make. So, if you’re considering a GIA, it’s important to investigate the product's fee structures and compare them with other providers. Fees can vary with each type of asset. For example, you may pay higher fees when investing in foreign exchange (forex) than in equities.

National Savings and Investment (NS&I) Account

NS&I describes itself as the ‘UK government savings bank’. It claims to be the only savings provider that secures 100% of your savings, no matter how much you invest - as it's backed by HM Treasury.

As a state-owned savings vehicle, when you save or invest with NS&I, you’re essentially lending money to the UK government. In return, you’re paid interest on your savings. NS&I offers various savings products, including Premium Bonds - which function like a lottery. It was previously known as the Post Office Savings Bank and National Savings.

Be pension confident.

Combine your old pension pots into one new online plan. It takes just a few minutes to sign up.

Get started

What are the pros and cons of an investment account?

Pros of an investment account

Wide range of options - perhaps the main positive of a GIA is its flexibility. It lets you invest in a wide range of assets, like equities, bonds and ETFs. These are essentially a basket of investments, typically equities and/or bonds, packaged as a single unit. ETFs don’t have any limits on contributions or restrictions on withdrawals. You can invest any amount, and as frequently as you wish.
‍Flexible - you can usually access your money at any time - usually without penalty. There are also no contribution limits, unlike with an ISA or pension.

‍

Cons of an investment account

You can lose money - with reward comes risk and you may get back less than you invest. Depending on the kind of investments in a GIA, it can be exposed to stock market volatility.
‍No tax advantages - unlike ISAs or pensions, GIAs offer no tax advantages or incentives. If you’re a high rate taxpayer in particular, the tax you pay on your gains can significantly impact your returns.

‍

Who are investment accounts for?

Investment accounts aren’t for everyone. Not everyone is able to invest, or will choose to. And not everyone will want to invest through a GIA.

Generally speaking, GIAs could suit you if:

You’ve used up your tax-free pension allowances and/or have a large sum to invest - the current annual limit for ISA contributions is £20,000, while it’s 100% of your salary or £60,000 (whichever is lower) for pensions (2025/26). GIAs have no upper limit on contributions.
‍You need flexible access and/or have a shorter time horizon for your investments - GIAs provide greater freedom than pensions (which you’re unable to access until 55, rising to 57 from 2028). They also provide a wide range of investment options and unrestricted access that usually come without penalties or withdrawal constraints.

‍

Investing for yourself requires a certain amount of knowledge, time investment and an ongoing commitment to managing your asset allocation. This is to ensure you maintain a well-diversified portfolio that reduces your risk.

A GIA could work alongside other saving and investment accounts you have like pensions and ISAs. Especially if you've used up your annual allowances on your pension and any ISAs you have, and still have some money to invest.

‍Risk warning‍

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.

Last edited: 25-06-2025