LISA product performance and more
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How could the LISA grow?
The Foresters Lifetime ISA does not pay interest on the amount you have paid in. Instead, the Order Insurance Fund, in which it is invested, provides your Stocks & Shares LISA with the potential for growth by way of bonuses, in addition to the 25% government bonus your Lifetime ISA will receive each tax year.
What are bonuses?
Any money paid into our Stocks & Shares LISA is invested in our 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 LISA.
When the time comes and you cash-in your LISA 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 transfer out, withdraw from, or fully cash-in your LISA meaning 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.
The addition of any bonuses is not guaranteed.
How do bonuses work?
We aim to pay bonuses in two ways:
We aim to pay annual bonuses on the amount you have paid into the Lifetime ISA. 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 LISA:
When you cash-in your Lifetime ISA in full, we also aim to add a final bonus to the total value of your plan.
The following annual bonus rates have been declared for the Lifetime ISA:
||Annual Bonus Rates
The annual bonus rate is applied to your accumulated fund i.e. the amounts you have invested less the amounts you have withdrawn and any annual bonuses that have been previously added.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 table is provided for information purposes only and should not be considered an indication of likely future performance.
The LISA 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 Foresters Lifetime ISA, please read the LISA Key Information Document (monthly contribution), Key Information Document (lump sum payment) and Important Information.
Foresters Lifetime ISA (LISA) - FAQs >>
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