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Inherited ISA Allowance Plan

Invest your tax-free inherited ISA allowance in our flexible Stocks & Shares ISA, with the potential for growth

Inherited ISA Allowance Plan

Product Performance

How could the Inherited ISA Allowance Plan grow?

The Inherited ISA Allowance Plan does not pay interest on the amount you have paid in. Instead, the with profits Order Insurance Fund provides your Inherited ISA Allowance Plan with the potential for growth by way of bonuses.

Find out more about with profits here.

What are bonuses?

Any money paid into our Inherited ISA Allowance Plan is invested in our with profits Order Insurance Fund along with the other Order Insurance Fund policyholders (excluding those with ethical investments).  Dependent on the performance of this fund, Foresters Friendly aim to add annual bonuses to increase the value of your Inherited ISA Allowance Plan.

When the time comes and you cash-in your Inherited ISA Allowance Plan in full, we also aim to add a final bonus to the value of the plan. This is done to ensure that the plan's payout reflects your fair share of the Order Insurance Fund.

In adverse market conditions, a Market Value Reduction (MVR) could be applied when you make one-off or regular withdrawals against, or fully cash-in, your Inherited ISA Allowance Plan meaning that the amount you receive will be reduced and you may not get back the full amount originally invested.  We will only do this to ensure fairness between policyholders leaving the fund at different times.  We will never apply an MVR if you die.

The addition of any bonuses is not guaranteed.

How do bonuses work?

We aim to pay bonuses in two ways:

1.  Annually:

We aim to pay annual bonuses on the amount you have paid into the Inherited ISA Allowance Plan.   Any annual bonuses declared on the plan will then increase the plan's value for future year's bonus declarations.  Bonuses are calculated daily which allows for the timing of any investments and withdrawals together with any previously allocated bonuses.

2.  Final bonus on full cash-in value of the Inherited ISA Allowance Plan:

When you cash-in your Inherited ISA Allowance Plan in full, we also aim to add a final bonus to the total value of your plan.

Example Inherited ISA Allowance Plan Returns

A £1,000 Inherited ISA Allowance Plan taken out on 1st April 2006 and surrendered on 1st April 2016 received a payout of £1,653.45, on the basis of no earlier withdrawals being taken. This is growth, after charges, of 65.3% or 5.2% per annum.

In the real-life example below, the payout is made up of:

  • the original amount invested (the blue section), plus
  • the total amount of annual bonuses added to the plan over the 10 year timeframe (the red section), plus
  • the addition of the final bonus when the plan was surrendered (the green section).

 Customer Sales Aid graph

Past performance should not be seen as a reliable indicator of future results and the addition of annual and final bonuses is not guaranteed.

  • The final bonus rate is based on the year the money was invested into the plan and can change at any time.
  • All bonuses will depend on the performance of the with profits fund and how we decide to distribute any profit.
  • You should be aware that in some investment conditions you may not get back the full amount originally invested.

Past Performance

The Foresters Inherited ISA Allowance Plan is classified as a Stock & Shares NISA. The following annual bonus rates have been declared for the Foresters Friendly Society Stocks & Shares NISA:

Year Annual Bonus Rates
2015 2.25%
2014 2.25%
2013 2.25%
2012 2.1%
2011 2%
2010 3%
2009 3%
2008 3%
2007 5.25%
2006 5.25%
2005 5.25%
2004 5%


The annual bonus rate is applied to the amount you have invested in your Inherited ISA Allowance Plan to date (minus any withdrawals you may have made to your Inherited ISA Allowance Plan) plus any previous bonuses that have been added.

The addition of any bonus is not guaranteed and you may not get back the full amount originally invested, dependent on the investment conditions at withdrawal.

To find out more about the addition of bonuses and how we manage our fund please read our Principles and Practices of Financial Management (PPFM).

We may vary the design of a product to best meet the needs of our policyholders which may affect the timing and size of future bonuses. Therefore the above table is provided for information purposes only and should not be considered an indication of likely future performance.

Risk Category

The Inherited ISA Allowance Plan is classified as a 'Medium Risk'. This could be suitable for medium risk investors, which can be classified as follows:

  • You are willing to take a moderate amount of risk.
  • You understand and accept that inflation could erode the value of your money over time.
  • You understand that you could lose money on a 'Medium Risk' investment.
  • You understand that Foresters Friendly Society regard a 'Medium Risk' product to be one which typically cannot predict the amount of money you may receive back.

For more details about the Inherited ISA Allowance Plan, please read the Key Features.

Inherited ISA Allowance Plan - FAQs >>