MTTM Podcast Episode 499 – Best Stocks & Shares ISAs in 2025, EV tax trick & Double-dipping warning

Listen to Episode 499

On this week's show I reveal the best stocks & shares ISAs in 2025, providing a comprehensive review of the leading investment platforms and trading apps in the UK. I analyse the cheapest managed and self-invested ISAs and provide details on how to get the best cashback and fee-free deals when signing up. I also look at recent performance and how the various platforms compare before revealing which platforms pay the most interest on uninvested cash. Next, I provide a quick tip for electric vehicle owners on how to save up to £195 in car tax. Finally, I explain how you could end up paying more for your insurance, even if you choose to pay annually, if you click the wrong button when applying online. Don't forget to leave us a voice note via Whatsapp for our 500th show - 0208 163 3629 

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Don't forget to leave us a voice note via Whatsapp for our 500th show - 0208 163 3629

Episode 499 Podcast Summary

Best Stocks & Shares ISAs in 2025

Summary:

I provide an analysis of platform costs, including new customer offers and the platforms that pay the best interest on uninvested cash. I compare the best managed ISA options, as well as the best self-invested ISAs, taking a look at performance data and different fee structures. When making your decision you need to consider what type of investor you are. Look at trading fees, fund switch costs and how suitable the platform is based on your investment preferences and potential portfolio size.

Key Insights:

• New Customer Offers: Many platforms are now offering cashback, fee discounts, or reduced FX fees to attract new Stocks and Shares ISA customers, which is unusual compared to previous years
• Managed vs. Self-Invested ISAs: Managed ISAs typically cost between £120 to £300 per year for a £20,000 portfolio, while self-invested ISAs vary significantly based on trading activity and fund choices
• Cost Variations: Platform costs depend on investment type (ETFs, unit trusts, direct shares etc), portfolio size and trading frequency. Fixed-fee platforms like Interactive Investor become more cost-effective for larger portfolios
• Interest on Uninvested Cash: Interest rates paid on uninvested cash vary widely between platforms, ranging from 0% to 4.58%, with AJ Bell Dodl offering a particularly high rate
• Platform Suitability: Different platforms suit different needs: Freetrade and Trading 212 for regular trading, Money Farm/Wealthify/J.P. Morgan Personal Investing for managed ISAs, AJ Bell Dodl for beginners and InvestEngine for ETF-only portfolios

Latest on the car finance mis-selling scandal

Summary:

From April 2025, electric vehicles (EVs) will begin to be taxed. EVs registered before March 31st, 2017, will pay £20, while those registered between April 1st 2017 and March 31st 2025 will pay £195. However, by re-taxing your vehicle now via the Gov.UK website, you push your next payment to March 2026 and avoid the charge in 2025! Even if your current tax isn't up, do it again now!

Key Insights:

• Upcoming Tax Changes: Electric vehicles, currently exempt from car tax, will be subject to it starting in April 2025
• Tax Rates Vary: The tax rate depends on the vehicle's registration date: £20 for those registered before March 31st 2017 and £195 for those registered between April 1st 2017 & March 31st 2025
• Potential Savings: By renewing car tax before April 2025 on the Gov.UK website, EV owners can delay their next payment until March 2026, potentially saving £195
• Action Required: To take advantage of this, EV owners need to visit the Gov.UK website, have their registration number and V5C logbook reference ready, and renew their tax before April 1st 2025

Beware of 'double-dipping' when buying car insurance online

Summary:

Here I explain the practice of "double-dipping" in car insurance, where customers might unknowingly pay more for their annual insurance premium. While it's commonly known that monthly payments are more expensive due to the fact that there is a credit agreement and interest added to the payments, there could be a hidden cost if you initially select a monthly payment option during the online quote process and then later switch to an annual payment. If you intend to pay annually, you should select the annual payment option throughout the entire quote process to avoid this potential extra charge

Key Insights:

• Monthly vs. Annual Cost: Paying car insurance monthly is generally more expensive as you will be subject to a credit agreement and have to pay additional interest
• "Double-Dipping" Risk: Even if you are paying for your insurance annually, selecting a monthly payment option during the initial quote process can result in a higher premium
• Consistent Selection: Always select the annual payment option throughout the entire online quote process if that is how you intend to pay for your premiums
• 0% Credit Card Solution: If you are unable to pay for your car insurance annually upfront, consider using a 0% purchase credit card to pay the annual premium and then pay off the card in instalments without interest

Episode quiz 

1. Roughly how much would it cost per year to invest £20,000 in a Managed ISA

a) £50 - £100

b) £120 - £300

c) £500 - £1,000

d) £1,000 +

2. Which investment platform's fee structure was likened to Netflix?

a) Moneyfarm

b) Hargreaves Lansdown

c) Interactive Investor

d) AJ Bell

3. Which platform could work well for those wanting to build their own portfolio of ETFs?

a) J.P. Morgan Personal Investing

b) Wealthify

c) Moneyfarm

d) InvestEngine

4. What is the "double-dipping" risk related to?

a) Car insurance payments

b) Investing in multiple ISAs

c) Tax evasion

d) Credit card fraud

5. How much can EV owners potentially save in car tax by renewing their car tax before 1st April 2025

a) Up to £95
b) Up to £150
c) Up to £195
d) Up to £250

Answers

1. b) £120 - £300
2. c) Interactive Investor
3. d) InvestEngine
4. a) Car insurance payments
5. c) Up to £195

Resources

Links referred to in the podcast:

• The Best Stocks and Shares ISA Cashback Deals
• Best & Cheapest Stocks and Shares ISA for beginners
• Best performing Stocks & Shares ISA
• Platforms that pay the highest interest rate on uninvested cash
• AJ Bell Dodl*
• Interactive Investor*
• Hargreaves Lansdown*
• InvestEngine
• J.P. Morgan Personal Investing
• Wealthify
• Moneyfarm
• Take out a free trial of 80 20 investor

 

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use.