Bonus ISA (Individual Savings Account)

Tax-free investment

Bonus ISA is an insurance investment as part of a stocks and shares ISA. It is a medium to long-term investment plan, for example between five to ten years. The table below provides an at a glance summary of the Bonus ISA and you can find out more by visiting the in detail tab.

i Your Bonus ISA	i Things you should consider
Build up a savings habit and use your tax-free stocks and shares ISA allowance by investing from only £15 a month, or a lump sum from just £500. Your investment will purchase units in the Scottish Friendly unitised with profits fund which is managed across a range of assets such as the stockmarket, bonds, cash and property. The value of units cannot fall but can grow through the addition of regular bonuses. When you cash in your plan, it's value may be increased by a final bonus or reduced by a Market Value Reduction to ensure your final value is linked to the performance of the Scottish Friendly With-Profits Fund. If you cash in on the date of the tenth anniversary of you taking out your investment, no Market Value Reduction will apply. This means the minimum value you receive will be the value of your units. Flexibility is built in. You can start, stop, raise or lower your payments whenever you like and cash in whenever you want. No profits are paid to city shareholders meaning they can be reinvested for the benefit of Scottish Friendly customers.	Tax-free 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 future. Future bonus levels depend on investment returns and expenses and how Scottish Friendly decides to distribute profits to customers. As such they cannot be guaranteed. When you cash in your plan its value will be linked to the performance of the Scottish Friendly With-Profits Fund. This means that your unit value may be increased by a final bonus or reduced by a Market Value Reduction (MVR) if investment values are low. You should consider this a medium to long-term investment for a period of at least five years. You can invest up to £11,520 in a stocks and shares ISA in the current tax year, less any amounts subscribed to a cash ISA with another ISA manager.

i Your Bonus ISA

i Things you should consider

Build up a savings habit and use your tax-free stocks and shares ISA allowance by investing from only £15 a month, or a lump sum from just £500.
Your investment will purchase units in the Scottish Friendly unitised with profits fund which is managed across a range of assets such as the stockmarket, bonds, cash and property. The value of units cannot fall but can grow through the addition of regular bonuses.
When you cash in your plan, it's value may be increased by a final bonus or reduced by a Market Value Reduction to ensure your final value is linked to the performance of the Scottish Friendly With-Profits Fund.
If you cash in on the date of the tenth anniversary of you taking out your investment, no Market Value Reduction will apply. This means the minimum value you receive will be the value of your units.
Flexibility is built in. You can start, stop, raise or lower your payments whenever you like and cash in whenever you want.
No profits are paid to city shareholders meaning they can be reinvested for the benefit of Scottish Friendly customers.

Tax-free 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 future.
Future bonus levels depend on investment returns and expenses and how Scottish Friendly decides to distribute profits to customers. As such they cannot be guaranteed.
When you cash in your plan its value will be linked to the performance of the Scottish Friendly With-Profits Fund. This means that your unit value may be increased by a final bonus or reduced by a Market Value Reduction (MVR) if investment values are low.
You should consider this a medium to long-term investment for a period of at least five years.
You can invest up to £11,520 in a stocks and shares ISA in the current tax year, less any amounts subscribed to a cash ISA with another ISA manager.

Find out more

No advice has been provided by Scottish Friendly in relation to this plan. If you are in any doubt as to whether this 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.

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Bonus ISA (Individual Savings Account)

Tax-free investment

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