Thinking of putting something away for a special treat in the future? Planning ahead usually helps, and with time on your side, a long term investments strategy using a Scottish Friendly ISA could be part of a wider savings and investment plan.
Listed below are some points you may or may not have been aware of regarding Investment ISAs.
#1 You can have two ISAs
Even if you already have a Cash ISA, you can have an Investment ISA too (provided you don’t go over your annual ISA allowance). This could allow you to take full advantage of your ISA allowance, and utilise the long term growth potential of the stock market. The value of your investments can fall as well as rise and you could get back less than you have paid in.
#2 A Scottish Friendly Investment ISA is flexible
The flexibility of an Investment ISA with Scottish Friendly means you can withdraw – or leave in – your money whenever you want. So if you need the money urgently, it’s accessible. Equally, you are not tied to a maturity date with a Scottish Friendly ISA. Although, as with all investments, your cash in value can fall and rise on a daily basis and you are not guaranteed to get all your money back.
#3 Get started from £10
A Scottish Friendly ISA is a low cost way to get started with investing. From £10 a month (what can you buy for that nowadays – 3 pints of beer? A couple of glossy magazines?) you can start investing now for a cash sum that you can enjoy in the future, as it should be considered a medium to long-term investment for a period of at least five years.
#4 Shelter up to £15,240 from the tax man
ISAs are tax-free – and the allowance usually rises every year in line more or less with inflation. So whatever you invest (up to a limit of £15,420 in 2015/16) – will grow free of income and capital gains tax (other than tax that’s already paid, i.e. on dividends from UK shares). Also, you should be aware that tax treatment depends on individual circumstances and tax law may change in the future.
#5 Track your investment performance 24/7
It’s easy to keep track of your investment performance with Scottish Friendly. Simply register for a My Plans account after purchasing an ISA product. After doing so, you will be able to manage your long term investment online. You can also track the current value of your ISA, make fund switches, make withdrawals and more.
Please be aware that Scottish Friendly only offer Investment ISAs – not Cash ISAs.