Stocks & Shares ISA
An ISA with
Putting a little away for the medium to long term is always a good idea, especially if you have something special in mind for a birthday, your retirement or a rainy day. Our Stocks & Shares ISA has flexible saving options and offers potential growth thanks to the possibility of bonuses. Whatever you’re planning could be a reality sooner than you thought.
We all have financial goals. Whether it’s something we’ve always wanted to do, or just a cushion for a little reassurance. Our Stocks & Shares ISA is a great way to save in a tax-free manner, as you don’t need to pay any Income or Capital Gains Tax on the return. You can also open an ISA by transferring an existing ISA to us.
Our investment aim is to generate a steady growth over five years or more, meaning your savings could start to add up, helping your financial dreams come true sooner rather than later.
There’s more good news. Take out a new Stocks and Shares ISA online, or submit a transfer request to open a new ISA by post, with a lump sum investment of at least £5,000 by 30 September 2020 and we’ll send you an M&S Gift Card of up to £180 once your money has remained invested for 3 months.
- £45 M&S Gift Card for a lump sum investment of £5,000 – £9,999
- £90 M&S Gift Card for a lump sum investment of £10,000 – £14,999
- £135 M&S Gift Card for a lump sum investment of £15,000 – £19,999
- £180 M&S Gift Card for a lump sum investment of £20,000+
Why choose a Stocks & Shares ISA?
Ideal for medium to long term savings. It’s designed for people looking to save something for their future.
Available to all UK residents aged 18 to 80.
You can save up to £20,000 in the 2020/2021 tax year.
Make regular payments from just £50 per month, lump sums of at least £500 and top ups of at least £250. Or, transfer an existing ISA to us.
Your money is invested in our top performing With Profits fund and has the potential to grow thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)
Access to Foresters Extras – membership benefits – including discretionary grants to help you to cover the cost of things like higher education and healthcare costs.
“I’m currently in my fifth year of studying on the Legal Practice Course at the University of Law. The Educational Award Fund grant enabled me to attend a work experience placement, which in turn helped with the application for my current job. It also meant that I was able to purchase study books without having to worry about the cost…”
See how much you could save
A real-life example
A £1,000 Stocks & Shares ISA taken out on 1st December 2009 and surrendered on 1st December 2019 received a pay out of £1,782.99, on the basis of no earlier withdrawals being taken. This is total growth, after charges, of 78.3% or 6% per annum.
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.
- The above graph is provided for information purposes. The potential for future bonuses depends on the performance of the Order Insurance Fund and how we distribute any profit.
Added value for you – Foresters Extras
Taking out a Stocks & Shares ISA is only the start. By doing so, you’re part of the Foresters Friendly family and can enjoy some wonderful, unique benefits such as discretionary grants to help with dental and optical costs.
Can I hold more than one ISA?
In any one tax year you can open a Cash ISA and a Stocks & Shares ISA, in addition to a Lifetime ISA if you are eligible. But you have to make sure that the combined annual contributions do not exceed the annual ISA allowance. You can also hold ISAs from previous years, it is only the contributions you make to your ISA in the current tax year which counts towards this year’s annual ISA allowance.
Please note that tax rules may change and depend on individual circumstances.
What is the difference between a Cash ISA and Stocks & Shares ISA?
Good question. Well, Cash ISAs are savings accounts that pay interest that is free of income tax. Unlike Stocks & Shares ISAs the value of your capital cannot rise and fall. They are available to anyone aged 16 and over, and come in two types:
- Instant Access. This is where you have direct access to your money and can make withdrawals whenever you want to for any reason.
- Fixed Rate. This is when you aim to lock away your money for a set period of time to potentially benefit from a better rate of interest.
A Stocks & Shares ISA, like the one offered by us, is intended to be a longer-term investment and is available to anyone aged 18 years old and over. There is the potential for a greater return on your savings over the longer term than with a Cash ISA due to the differing investment approach although, depending on the performance of the stock market and any other asset types your money may be invested in, the value of your investments can fall as well as rise and you may not get back the full amount originally invested in a Stocks & Shares ISA.
Can I transfer an existing ISA?
Yes, you can transfer an existing ISA into our Stocks & Shares ISA and then continue to save for your future with Foresters Friendly Society.
Transferring an existing ISA to us is simple. If you are opening a new ISA with us, all you need to do is download and complete this Transfer Application Form, then send this to us and we will contact your existing ISA provider to start the transfer process. You won’t need to do any more than that and we will contact you when the ISA transfer is finished.
If you are transferring into an ISA you already hold with us, you can just complete the Transfer Form, making sure you provide your Foresters ISA policy number. We’ll then do the rest and let you know when the transferred funds have been added to your Foresters ISA.
If you would like to discuss transferring to Foresters Friendly Society in more detail, either call our friendly UK-based team on 0800 988 2418 or email us at firstname.lastname@example.org and we will be happy to answer any questions you may have.
Where is the money invested?
The money you pay into the Stocks & Shares ISA is invested in Foresters Friendly Society’s Order Insurance Fund with the aim of providing investment growth. Dependent on the performance of our fund, we aim to add annual bonuses and a final bonus to your ISA which will increase your plan’s value. The addition of bonuses is not guaranteed.
Within our fund, your money is spread across a number of different types of investments including property, equities, cash and UK government bonds, to help minimise risk and increase the potential returns. You won’t have to make any investment choices, our expert fund managers manage the fund on your behalf.
Please see the Principles and Practices of Financial Management (PPFM) for the latest information on our investment strategy.
What interest does the plan pay?
The Stocks & Shares ISA doesn’t pay interest. Instead, by investing the money you pay into the plan into our Order Insurance Fund, which is a with profits fund, we provide your plan with the potential for growth by way of bonuses. Any profits generated by the fund are used to add an annual bonus to your ISA and possibly a final bonus when you withdraw your money.
We have paid annual bonuses on our Stocks & Shares ISA for the past 16 years.
- In 2019 the annual bonus rate was 1.75%.
The annual bonus is applied to the amounts you have invested, less the amounts you have withdrawn, and any annual bonuses that have been previously 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 rate is provided for information purposes only and should not be considered an indication of likely future performance.
Are there any charges?
There is an Annual Management Charge which is initially set at 2% of the value of your ISA. We deduct charges upfront before we declare bonuses. This means there are no additional charges for you to pay. This charge could increase, but we promise it will never exceed 3% of the value of your ISA in any one year. The charges are designed to cover our costs for administering the ISA on your behalf. For more information about charges, please take a few minutes to read the Stocks & Shares ISA Key Information Document and Important Information.
Can I make withdrawals?
If you need access to your money, regular and one-off withdrawals can be made as long as the remaining balance of your ISA does not fall below £500. Regular withdrawals at fixed points in time i.e. monthly or quarterly can be made after two years, and one off withdrawals can be made at any time.
For further information on the terms of withdrawals please take a few minutes to read the Important Information document.
What happens if I cash-in my ISA?
Being a with profits investment, your ISA will benefit from the potential for growth the longer it is kept invested. Ideally for a minimum of 5 years but the longer the better. However, you can cash-in your investment whenever you want. The cash-in value will depend on the amount invested, the amounts that have been withdrawn and any annual bonuses that have been added. Depending on the investment returns achieved and our costs, in good investment conditions we may also add a final bonus. However, in not-so-good investment conditions, we may apply a Market Value Reduction (MVR) which will reduce the plan’s value and may mean you get back less than was paid in.
For more details please take a few minutes to read the Important Information document.
What if I change my mind?
If you change your mind and wish to close your ISA within the 30 day cancellation period, you can just complete the cancellation form and return it to us.
You can cash-in your ISA whenever you choose after the 30 day cancellation period has passed. But due to the nature of the investment, you may find you get back less than you have paid in.
For more information please see the Important Information document.
I’m not sure if an ISA is right for me. What should I do?
If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser. Of course, you may have to pay for this advice.
Three ways to top up an existing ISA
Make a one-off, secure, payment from your debit card. Top up online now.
Call us on 0800 988 2418 and we can take a payment from your debit card over the phone.
Download the ISA Top Up Form and either complete the Direct Debit instruction or attach a cheque for the lump sum investment, then send it back to us and we will do the rest for you. To transfer an ISA to Foresters, download the ISA Transfer Form, complete and return it to us, and we’ll contact your existing provider for you.
We’re here if you need help or have any questions
If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).