Scottish Friendly Bonus ISA

Although our past performance is not a guide to the future, Scottish Friendly has been helping their members save since 1862 and save tax-free since the 1970's. We're delighted that ABCUL has chosen us as your recommended Bonus ISA Provider.

Our Friendly Bonus ISA is a tax-free savings plan that can give you good potential returns, making your money work harder for you. When you take out this plan with us, you'll be investing in our ISA With Profits Fund.

Like Credit Unions, we're a mutual organisation, looking after our members - not external shareholders. So when you invest in a Bonus ISA, you'll be sharing in the success of Scottish Friendly.

If you want to arrange to make regular additional contributions, you can pay direct through your bank or by cheque, or if you don't have access to a bank account, your Credit Union can also help you make regular payments.

And remember, the sooner you start up A Friendly Bonus ISA, the sooner you'll be able to start building for your future.

Investing in the Friendly Bonus ISA from Scottish Friendly couldn't be easier, simply:

• Visit your Credit Union
• Phone 0800 955 5995
• Or download an application form

What does the Friendly Bonus ISA offer?

An Individual Savings Account (ISA) is a way of sheltering your money from the taxman, as you can keep all the proceeds from your investment tax-free - there is no Income or Capital Gains Tax to pay under current legislation. However, the fund in which you invest receives UK dividend income net of Corporation Tax.

The Friendly Bonus ISA is part of the stocks and shares ISA component and invests in Scottish Friendly's with-profits fund that can help you build substantial savings for your future. It offers you a degree of security, growth potential, flexibility and freedom from tax. It grows through the addition of bonuses that, once added, cannot be taken away. Tax-free means free from Income and Capital Gains Tax. We can no longer reclaim the tax credit pre-paid on dividend income from UK equities.

Your Friendly Bonus ISA is designed to be a medium to long term (5-10 years) investment plan with the aim of providing a consistently better performance than a typical bank or building society. Remember that capital values are not guaranteed with this plan although they are in building society accounts where they benefit from ease of access.

You can invest in either our Mini Stocks and Shares ISA or our Maxi ISA (but not both) in any one tax year.

How much can I invest?

With Scottish Friendly, you can choose from two options:

• Our Stocks and Shares Mini ISA allows you to invest up to £4,000 in each tax year
• Our Stocks and Shares Maxi ISA allows you to invest up to £7,000 in each tax year

You're in total control of your savings. Invest from £30 per month and/or a lump sum of £500 upwards. You can pay more money in (subject to the limits) or take it out, and stop and restart your payments at any time. It's all up to you!

There is an initial charge. Details of other charges are detailed in the Key Features.

Where is my money invested?

Your money is invested in the Scottish Friendly ISA With-Profits Fund which invests in stocks and shares, fixed interest funds and cash for long-term growth as well as a degree of security.

As with-profits plan, your money grows by the addition of bonuses. What's more, these are tax-free. These bonuses are your share of the society's profits. The level of bonus is determined by the Society's investment performance and how we decide to distribute profits. These bonuses are not guaranteed, however once a bonus is added it cannot be taken away. So your profits are safe. The current bonus rate is 3.5% p.a.¹

When you finally cash in your Friendly Bonus ISA, you could well be in for a pleasant surprise with a final bonus. Add this to all the other bonuses you have accrued over the years and your tax-free Friendly Bonus ISA could be a highly profitable investment. This final bonus isn't guaranteed but the longer you keep your Friendly Bonus ISA, the more likely you are to get one.

You can cash in your ISA at any time, although in some circumstances we may have to apply a Market Value Adjustment (MVA), which could result in reducing the amount we pay you. We guarantee there will be no MVA if you cash in on the 10th anniversary of your original investment.

10 years of top past performance

Scottish Friendly has achieved a top ten position for ten-year regular savings traditional with-profits plans each year since 1994 in the annual Money Management magazine² with-profits survey. What's more, in the 2005 Money Management survey, Scottish Friendly achieved a top ten position for its ten, fifteen and twenty year with-profits past performance too.

Past performance is not a guide to future performance. With profits bonuses are not guaranteed. The Friendly Bonus ISA is a unitised with profits savings plan and has a different bonus and charging structure.

Apply now

Applying is easy. Simply click on the Apply Now link to download an application form and read the Key Features. Then complete it and post it to:

Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR

Or, you can request an information pack to be sent to you in the post. This pack includes further Friendly Bonus ISA information and an application form. If you are in any doubt as to whether this product is suitable for you please contact your Financial Adviser.

If you apply for this product, for your records, we recommend you print or save a copy of this and any other relevant pages together with a copy of the Key Features.

1. On your investment, less initial charge. Future bonus rates are not guaranteed
2. Source: Money Management magazine April 2005. Survey based on Scottish Friendly traditional with profits savings plan.