The information provided in this article was accurate at the time of publishing and should be read in the context of the date it was published. Views in this article are those of the author alone and do not necessarily represent the view of Scottish Friendly.

Spend beyond your means at Christmas? You’re not alone.

A lot of people find things tough, financially, when the festivities are over and the dust has settled.

And when it comes to present buying, relying on a mixture of credit card purchases, plundering well intentioned savings accounts, borrowing from relatives and whatever other funds can be mustered is not an uncommon position for many people in the run up to Christmas.

Most of us could do with being better organised when it comes to money. I certainly could.

At this time of year, I tend to think how much easier my life would be, financially speaking, if only I had planned ahead earlier. But of course, as they say, hindsight is 20:20.

It’s with this thought in mind that Scottish Friendly have developed a new product – My Loyalty Choice (New ISA).

My Loyalty Choice (New ISA)

Like other Scottish Friendly New ISAs, it adheres to the same principles:

  • It’s a New Investment ISA so you can have one New Investment ISA like the My Loyalty Choice (New ISA) plus one New Cash ISA with another ISA manager in each tax year, up to the current limit of £15,000.
  • Low monthly payments make investing more affordable than you might think
  • You can take the money out whenever you wish
  • If you can leave you money invested for at least five years, ideally ten,  you give your money access to long term growth potential
  • It’s not a suitable product for short term investing
  • It’s a stock market investment – so the value of your investment can go down as well as up – and you could get back less than you have paid in
  • It’s tax-free – which means the policy grows free of income and capital gains tax (other than tax on dividends from UK shares).
  • Tax treatment depends on individual circumstances and tax law may change in the future.

However, with My Loyalty Choice (New ISA), we fully utilise our unique multiple ISA policy feature.

Multiple policies within your New ISA

We’ve explained before how you can name these policies – and take out additional policies to build towards different goals.

With My Loyalty Choice (New ISA), we’ve taken this a step further to help you plan for your future.

If you decide to open a My Loyalty Choice (New ISA), every year, on the anniversary of your initial investment, we will send you an email, reminding you to open another policy within your Scottish Friendly New ISA.

The idea behind this product is that you open multiple policies on a yearly basis to help you plan ahead more easily.

After at least 5, and ideally 10 years of investment in the first policy, you may want to cash this in and spend it on your yearly designated expense – in this instance it may be Christmas money. So you could have a pot of money that has had the long term growth potential of 10 years investment in the fund or funds of your choice.

However, here comes the fun part – once you have spent this money – you can look forward to another policy maturing the next year, and the next, and the next. This is of course assuming that you continue to pay into your policies – and is dependent on the number of policies you take out. Why not take a look at the projections charts on the product page to get a clearer idea of how your money could grow.

So from an initial investment starting form £10 – if you are prepared to stick to your plan for the long term – you could plan for the future and hopefully enjoy a pot of money to spend on Christmas presents every year – without borrowing from relatives, plundering your short term savings or using a credit card.

Or whatever it is we’ll have in 2025.

Find out more about My Loyalty Choice (New ISA)>

No advice has been provided by Scottish Friendly. If you are in any doubt as to whether a savings or investment plan is suitable for you, you should contact a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting Advisers may charge for providing such advice and should confirm any cost beforehand.