ISAs – Individual Savings Accounts
Invest up to £20,000 in 2017/2018
ISAs are tax-efficient, allowing you to make the most of your savings & investments.
ISA stands for Individual Savings Account. It is where each UK resident can save or invest tax-free, either in cash, stocks & shares or peer to peer lending. Tax is not charged on any interest earned or gains made (other than dividends from UK shares) within an account. Tax treatment depends on individual circumstances and can change in the future.
There are four types of ISAs for adults:
At Scottish Friendly we only offer Investment ISAs, enabling you to invest for the future.
An Investment ISA usually aims to put your money to work using the long-term growth potential of the stock market. It can also offer access to investment in property, bonds and cash. If the market performs well, your investment could grow. However, the value of your investment can go down as well as up, so you could end up with less than you paid in.
Investment ISAs are normally considered medium to long-term investments, of at least 5 years but ideally 10, to give your money access to the growth potential of the stock market.
Scottish Friendly are a mutual. It means we don’t have shareholders and all our profits are used to benefit our members. Whilst there are many ISA providers, and products in the marketplace today, you don’t have to be an investment expert to get started with an Investment ISA. At Scottish Friendly we believe that investing should be accessible to everyone, not just those with a larger amount to invest.
With both our Investment ISAs and Junior ISAs you can start investing from only £10 a month which could make your money work harder.
Find out which Scottish Friendly ISA is best for you:
It depends whether you want to save or invest. Cash ISAs are essentially bank accounts where the interest is added tax-free, so the overall amount can only ever go up, although inflation can erode the value over time. Stocks & Shares or Investment ISAs are linked to the stock market, meaning that the money in the account could have a greater potential than a secure cash account to increase over the long term but it can also fall, so your original investment is not guaranteed.
You are eligible to open an ISA account with Scottish Friendly if you are over 18 years old and a UK resident.
You can’t hold an ISA with or on behalf of someone else. You can only take out the ISA in your name alone; you can't have a joint ISA.
With Scottish Friendly you can invest from £10 a month or a lump sum from £100. You can also transfer in from another provider.
You can save or invest in one of each type of account providing you stay within your annual ISA allowance – currently £20,000. Click here to find out more.
Tax free, in relation to a Stocks & Shares / Investment ISA, means the fund your plan invests in grows free of income and capital gains tax (other than tax on dividends from UK shares). Tax treatment depends on your individual circumstances and tax law may change in the future. If you complete a tax return, you don’t need to declare any ISA interest or profits on it.
An Investment ISA can be opened even if you have a Cash ISA, Lifetime ISA or an Innovative Finance ISA providing you remain within your annual £20,000 limit. Find out more about splitting your ISA allowance here.
The current ISA rules allow you to transfer any ISA into another ISA with another ISA provider with the exception of Lifetime ISA. So if you currently have a Cash ISA you can transfer it to either an Investment ISA with us or an ISA with another provider. Any type of ISA can be transferred into a Lifetime ISA but you can only transfer a Lifetime ISA into another Lifetime ISA. You should check if there are any charges applied for transferring.
It’s important to understand the risks of stocks and shares ISAs. If the market performs well, your investment could grow. However, the value of your investment can go down as well as up, so you could end up with less than you paid in.
Account Management can be done via your account online, via the My Plans tool, or by phone, email and post
When you start investing, as a thank you for choosing Scottish Friendly, we’ll send you a £25 My Rewards card which can be redeemed at a choice of over 55 UK retailers such as M&S, Amazon, Next, John Lewis and many more!
No advice has been provided by Scottish Friendly. If you are in any doubt as to whether a 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 www.unbiased.co.uk. Advisers may charge for providing such advice and should confirm any cost beforehand.
Scottish Friendly is not responsible for the accuracy of the information displayed on externally linked third party websites. The Scottish Friendly Group of Companies consists of the following companies: Scottish Friendly Assurance Society Limited – Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Member of AFM, Member of ABI: Life, Savings and Investments. Scottish Friendly Asset Managers Limited – Authorised and regulated by the Financial Conduct Authority. Member of The Investment Association. Registered in Scotland No 187215: OEIC Managers, ISA Managers. Scottish Friendly Insurance Services Limited – Authorised and regulated by the Financial Conduct Authority. Registered in Scotland No 113007. SFIS (Nominees) Limited - Registered in Scotland No 397351. Head office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.