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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, with potential for growth after five to ten years. The table below provides an at a glance summary of the Stocks and Shares ISA and you can find out more by visiting the in detail tab.

Pay in from £15 a month. Invest up to £10,680 each tax year.
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 per month, or a lump sum from just £500.
  • Your investment will grow with any regular payments you make and can also grow through the addition of regular bonuses which, once added, cannot be taken away.
  • Your investment may also be increased by a final bonus when you cash in and is related to the investment performance of the Scottish Friendly With-Profits Fund.
  • 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.
  • An MVR will only apply in certain circumstances, for example when market values are low. We guarantee that no MVA will apply if you cash in on the 10th anniversary date of your ISA.
  • You should consider this a medium to long-term investment for a period of at least five years.
  • You can invest up to £10,680 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.

Tax-free investment

Bonus ISA is an Individual Savings Account (ISA) – a way of sheltering your money from the taxman, because you don’t have to pay income or capital gains taxes on the proceeds from your investment under current legislation. However, the fund in which you invest receives UK dividend income net of corporation tax. Please note that tax treatment depends on your individual circumstances and the levels and basis of taxation may change in the future.

Pay in from £15 a month. Invest up to £10,680 each tax year.

 

Bonus ISA is an insurance investment as part of a stocks and shares ISA. It invests in Scottish Friendly’s With-Profits Fund. It offers a degree of security and grows through the addition of potential bonuses.

It is a medium to long-term investment plan, with growth usually expected after five to ten years. Bonus ISA is aimed at providing a consistently better performance than a typical bank or building society ISA. Remember capital values are not guaranteed with Bonus ISA although they are in building society accounts where they benefit from ease of access.

Make regular or lump sum investments

You can pay from £15 per month into your Bonus ISA. Or you can pay in lump sums of £500 and upwards. You can invest up to £10,680 each tax year. This is the maximum annual allowance of which up to £5,340 can be allocated to a Cash Account with another ISA manager in this tax year.

For Bonus ISA you pay an initial charge of 4%. For details, please see Key Features.

Aim to shelter your money and let it grow

Your Bonus ISA money is invested in the Scottish Friendly ISA With-Profits Fund. To ensure your investment is diverse and well balanced the fund is managed across a range of assets. Broadly your money is spread across shares, bonds, cash and property.

Your money grows from the addition of bonuses. They are normally declared each year, although they cannot be guaranteed in advance. These bonuses are applied through a daily price rise on your units in the With-Profits fund. Their value is based on the profit we make, our investment returns and the way in which we distribute these to our customers. The bonuses are not guaranteed, but once a bonus is added it cannot be taken away. So the profits of your investment are safe.

So hopefully, as the value of the fund rises, you receive regular bonuses. Plus when you close your Bonus ISA you might get an additional final bonus. A final bonus isn’t guaranteed but you’re more likely to get one the longer you keep your Bonus ISA.

You can withdraw money from your Bonus ISA whenever you want. In some circumstances where you close your Bonus ISA we may have to apply a Market Value Reduction (MVR). This is a typical measure when you leave a with-profits fund early. It could result in a smaller payout.

We guarantee that we won’t make a MVR when you cash in on the tenth anniversary of the start of your investment. You can find out more on MVR in the Key Features and ‘How we invest your money' guide.

Get your Bonus ISA

So with Bonus ISA you could shelter your money from the taxman and give it a better chance to grow.

Opening a Bonus ISA with Scottish Friendly is easy. Make sure you have read and understood the Key Features and ‘How we invest your money’ guide before you apply. Then you’re ready to:

  • Download an application form and post it to:
    Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR.
  • Or order an information pack which we’ll send you in the post.

If you apply, we suggest printing or saving a copy of this page, other relevant pages, the Key Features and 'How We Invest Your Money' guide.

Apply now

Taking out an investment plan with us is straightforward

Thank you for choosing to apply. All you have to do is follow five simple steps:

  1. Before you apply, please ensure that you have read and understood the information provided on Bonus ISA.
  2. Then download and carefully read the Key Features.
  3. Download the Bonus ISA application form.
  4. Print your completed application form, then sign and date it correctly.
  5. Finally, post your completed application form to
    Scottish Friendly Assurance, Freepost, Glasgow, G2 4BR.

Download Application Form

Before you continue, you should ensure you have read and understood the Key Features document. This is our standard client agreement upon which we intend to rely. For your own benefit and protection you should read these terms carefully. If you do not understand any point please ask for further information.

Call us on 0333 323 5433 if you have any further questions about this plan or how to apply for the Bonus ISA.

Lines are open 8.30am-5.30pm, Monday to Friday.

Scottish Friendly may record and monitor calls.

The Scottish Friendly Marketing Group is authorised and regulated by the Financial Services Authority, the financial regulator for the United Kingdom, and consists of the following companies: Scottish Friendly Assurance Society Limited: Life, Pensions, Savings and Investments. Member of ABI and AFM; Scottish Friendly Insurance Services Limited: Provider of Wrap Administration Services. Registered in Scotland No. 113007; Scottish Friendly Asset Managers Limited: OEIC Managers, ISA Managers. Registered in Scotland No. 187215; SFIS (Nominees) Limited. Registered in Scotland No 397351; Scottish Friendly Trustee Company Limited. Registered in Scotland No 312652. Head office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.