Bonus ISA
Smooth, steady growth - and tax-free
- Your investment grows from the addition of bonuses
- Save tax-free - no income tax or capital gains tax to pay
- Save from £15 a month. Invest up to £10,200 each tax year
What does the 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 Bonus ISA is an insurance investment as part of the stocks and shares ISA. It invests in Scottish Friendly's with-profits fund. It offers you a degree of security, growth potential, flexibility and freedom from tax. It grows through the addition of potential bonuses. 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 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.
How much can I invest?
You're in total control of your savings. Invest from £15 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 as long as you don't go beyond your maximum annual tax-free allowance. It's all up to you!
The maximum annual tax-free allowance is £10,200 of which up to £5,100 can be allocated to a Cash Account with another ISA Manager.
There is an initial charge of 4%. 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. Your fund is managed across a range of assets, ensuring your investment is diverse and well balanced. Broadly, your money will be spread across the Stock Market, property investments, government and company bonds and cash.
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 3.0% p.a.1
When you finally cash in your 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 Bonus ISA could be a profitable investment. This final bonus isn't guaranteed but the longer you keep your 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 Reduction (MVR), which could result in reducing the amount we pay you. We guarantee there will be no Market Value Reduction (MVR) if you cash in on the 10th anniversary of your original investment.
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 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.
- On your investment, less initial charge. Future bonus rates are not guaranteed
