My Sovereign Investment (ISA)

What is it?

It’s tax-free investing, using your ISA allowance and the long-term growth potential of the stock market.

What is it for?

Put a little away for you each month - maybe towards a special holiday, new car or simply for a rainy day.

How is it different?

Split your ISA into separate policies to help you keep track of your financial goals.

At a glance

My Sovereign Investment (ISA) is an Investment ISA, which offers you tax-free growth potential.

Start investing from just £10 a month.

A single fund choice with a guaranteed minimum cash lump sum on your 10-year anniversary of investing. Terms apply.

Available to adults ages 18 or above who are resident in the UK.

Remember the value of investments can go down as well as up, and you could get back less than you’ve paid in.

Tax-free means the fund grows free from tax, with the exception of tax we’ve already paid on your behalf (such as on dividends from UK shares). Tax treatment depends on individual circumstances. Tax law may change in the future.

How it works

Read on to find out more about how our My Sovereign Investment (ISA) works and consider whether an Investment ISA is right for you.

Important things to think about
About investing in this ISA
- My Sovereign Investment (ISA) is a medium to long-term investment of at least 5 years and ideally 10.
- As with all investments, it's important to be aware that the value can go down as well as up, so you could get back less than you've paid in.
About tax and ISAs
- Tax treatment depends on individual circumstances. Tax law may change in the future.
- Tax-free means the policy grows free of income or capital gains tax (other than tax that's already paid i.e. on dividends from UK shares).
- There are four different types of ISA - Investment ISA, Cash ISA, Innovative Finance ISA and Lifetime ISA - and you can have one of each in the current tax year.
- The current ISA limit is £20,000 and this is the total you can invest across all types of ISA each year.
How much can I invest?

It doesn't take much to get started

From just £10 a month, you could start a My Sovereign Investment (ISA) investment with Scottish Friendly. You can also make lump sum payments from £100, or you can combine monthly payments with a lump sum. It's up to you.

Make the most of your ISA allowance

The current tax-free ISA allowance means that you can put a total of £20,000 into a My Sovereign Investment (ISA) in the current tax year.

This is the total amount you can invest across all types of ISA. So, if you have already saved in a Cash ISA, Innovative Finance ISA or Lifetime ISA this year, this will reduce the amount you can invest in a My Sovereign Investment (ISA).

Read more about tax and ISAs in the important things to think about tab.

You're in control

You can increase, decrease, pause and restart the amount you're paying in at any time. Keep in mind that if you're aiming to grow your investment for a specific goal, pausing your payments will mean you take longer to reach it.

You can also choose to automatically raise your monthly payment amount by a set percentage every year - e.g. 2.5%, 5% or 10%. This is called your yearly payment increase rate.

Of course you can change this rate at any time and remove it should you need to.
How will my money be invested?
About investments

Unlike a Cash ISA or traditional savings account, you don't earn interest on the money you pay in.

Instead, an Investment ISA - like My Sovereign Investment (ISA) - puts your money to work using the long-term growth potential of the stock market.

When you set up a My Sovereign Investment (ISA), your money will be invested in an investment policy within a Scottish Friendly ISA. The policy then invests in our Unitised With-Profits fund, which you can read more about in the 'What funds can I invest in?' section.

Guaranteed at least what you've paid in on your 10-year anniversary

With My Sovereign Investment (ISA) you get a guaranteed cash sum if you cash in on the 10th anniversary of the start date of your investment, or every 5 years after this date. So this includes your 15th anniversary, 20th anniversary, 25th anniversary and so on.

The cash sum will initially be at least equal to the payments you've made, provided you haven’t withdrawn any of the money in your My Sovereign Investment policy.

Keep in mind if you cash in or make a withdrawal before or after the 10th anniversary, you could get back less than you have paid in.

Split your investment for each of your goals

With our ISA you can keep track of each of your financial goals by splitting it into different policies. You can give each policy a name to help you remember what you're investing for in the future.

As long as you stay within your ISA allowance, you can add as many policies as you like.

Managing your investment

We're sure you'll want to check up on and maintain your ISA with us every now and again. That's why we created the My Plans online tool where you can view and manage your policies.

With the My Sovereign Investment (ISA) and My Plans you can:
- Increase, decrease, pause or restart your monthly payments
- Make one-off lump sum payments
- Add extra policies within your ISA
- And much more...

What funds can I invest in?

Invest in a single fund

My Sovereign Investment (ISA) offers a straightforward option of investing in one fund - the Unitised With-Profits fund.

The information and Key Information Document (KID) below gives you an overview of the fund together with any fund charges and should be read alongside the Product Guide.

The 'How your investment could grow' tool in the section below provides additional examples of what you could get back in the future based on a payment amount which is lower than that shown in the KID.

Fund information

Fund name and summary	Grading	Benefits	Things to think about
Unitised With-Profits fund A mixed managed fund from Scottish Friendly where premiums are pooled with those of other clients and returns are linked to the performance of the underlying assets within the fund.	Low expected risk and return	An investment linked to a cautiously managed portfolio of stock market, property, cash and bond assets. Provided you haven't made any withdrawals or switched out of the fund, if you cash in only on the 10th anniversary, or each subsequent 5th year anniversary thereafter, of your continuous investment in the Unitised With-Profits fund you will receive a guaranteed cash sum of at least as much as you have invested.	When you cash in, switch out or take a withdrawal from the Unitised With-Profits fund you will receive a value which is in line with the performance of the assets within the fund. This is done by adding a final bonus or deducting a market value reduction. No market value reduction can apply on the 10-year anniversary, or each subsequent 5th year anniversary thereafter, of your continuous investment in the Unitised With-Profits fund, which provides your guaranteed value. Continuous investment means you have maintained at least one full unit in the Unitised With-Profits fund and is measured from the first day you invest.
Download the Key Information Document for the Unitised With-Profits fund

What could I get back?

How your investment could grow

Because your investment is linked to the stock market it’s impossible to tell you the exact return you may get in the future - but we can give you a rough idea.

If you are wishing to make a lump sum investment you can see an example of what you might get back in the Product Guide document.

The tool below provides examples of what you could get back in the future based on a payment amount which is lower than that shown in the Key Information Document.

Use our handy tool below to see how your money could grow based on your premium and fund choice within a My Sovereign Investment (ISA).
Rewards and benefits

Apply online

Starting your ISA with Scottish Friendly is safe, easy and you can complete your application online today. Once you're comfortable with the way our My Sovereign Investment (ISA) works, make sure you've read the Product Guide and Key Information Document for the fund in the 'What funds can I invest in?' section above and then you can apply online.

My Sovereign Investment (ISA) Product Guide

Scottish Friendly doesn't provide advice. The information provided should help you decide if the plan is suitable for you. If you're not sure whether this plan is suitable, you should contact an independent financial adviser for advice. Advisers may charge for providing such advice and should confirm any cost beforehand.

My Sovereign Investment (ISA)

What is it?

What is it for?

How is it different?

At a glance

How it works

About investing in this ISA

About tax and ISAs

It doesn't take much to get started

Make the most of your ISA allowance

You're in control

About investments

Guaranteed at least what you've paid in on your 10-year anniversary

Split your investment for each of your goals

Managing your investment

Invest in a single fund

Fund information

Unitised With-Profits fund

How your investment could grow

Being part of a mutual

Apply online

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Already a customer on My Plans?