Scottish Friendly ISA

Why Scottish Friendly?

Scottish friendly was founded in 1862 originally as the City of Glasgow Friendly Society and offers a broad range of financial services and investment products.

In 2019, Scottish Friendly took over a significant portion of business from Canada Life which dramatically expanded the company’s assets.

With over £5bn of assets under their control, they are considered a major player in the financial services industry and have a firmly established history and reputation.

Scottish Friendly was also awarded the ‘Best Junior ISA Provider’ at the Investment Life & Pensions awards in 2019.

What is an ISA?

An ISA account is a savings account that shelters your money from tax.

Savings in an ISA account are shielded from the following taxes:

1. Income tax
2. Dividend tax
3. Tax on interest
4. Capital Gain Tax

No matter how well your ISA savings perform, you never need to worry about paying tax on them - even when you withdraw your money from your ISA account.

The government only allows you to contribute a certain amount of money to ISA accounts each year. For the current tax year, the ISA allowance is £20,000 which means you can’t add more than this.

What are the different types of Scottish Friendly ISA accounts?

Currently, Scottish Friendly only offer Investment ISAs (also known as Stocks and Shares ISAs).

They don’t currently offer a Cash ISA, Innovative Finance ISA or a Lifetime ISA.

What are Scottish Friendly Investment ISAs?

Scottish Friendly currently offer four types of Investments ISAs, and they differ based on the underlying investments they hold and how you select them:

• My Choice ISA
• My Prime ISA
• My Easy Choice ISA
• My Ethical Choice ISA

The four Investment ISA types are similar, but vary in the underlying funds you can invest in.

My Choice ISA:

Choose from 10 Scottish Friendly funds to invest in from lower to higher risk. You can mix and match between the 10 funds to get a diversified ISA portfolio. You can invest from £10 per month or with a £100 lump sum.

My Prime ISA:

My Prime ISAs are similar to My Choice ISAs in that you can choose from the same 10 funds to invest in. However, you have to contribute at least either £100 per month or a £2,000 lump sum compared to lower amounts for My Choice ISAs. As a reward for committing more of your savings, you pay lower ongoing charges.

My Easy Choice ISA:

Instead of picking from 10 funds, a My Easy Choice ISA invests in one fund. In this ISA, you are guaranteed to get back at least what you invest after holding your ISA for 10 years provided you don’t make any withdrawals or switches.

My Ethical Choice ISA:

With a My Ethical Choice ISA, you’ll invest in Scottish Friendly's ethical fund. This fund invests with certain ethical and social responsibilities in mind, but you don’t have the ability to pick between different ones. You can invest from £10 per month or with a £100 lump sum.

How do I open a Scottish Friendly ISA?

You can open a Scottish Friendly ISA through their website, over the phone or by post and you’ll need to add money to start your account. You can do this by setting up a regular contribution or paying in with your debit card or by cheque.

FAQs

Do I pay tax when withdrawing from an Investment ISA?

No, you never need to pay tax withdrawing money from an ISA.

How long does it take to withdraw from an Investment ISA?

You can withdraw from a Scottish Friendly ISA at any point, and withdrawals usually complete in around 5 working days.

Can my investments go down in an Investment ISA?

Yes, as they are Stocks and Shares ISAs the money you invest will go up and down in value so you could lose money. The higher risk your portfolio is, the more it will likely fluctuate in value.

How can I manage my Investment ISA?

You can manage your account online through the online portal to add or withdraw money, change your investments, or make other adjustments.

They also have a mobile app so you can manage your ISA account from your mobile phone.

How do I add money to my Investment ISA?

You can top up online via debit card or a regular payment, or you can call their helpdesk to add money over the phone, or by cheque in the post.

Can I transfer my ISA into an Investment ISA?

Yes, you can transfer your existing ISA account into an Investment ISA. You’ll need to complete an ISA transfer form, which you can get from your new provider’s website.

Does my ISA allowance roll over each year?

No, you lose any unused ISA allowance each tax year when it refreshes.

How much can I withdraw from an Investment ISA?

You can withdraw as much as you want from your Investment ISA at any time. Remember, you won’t be able to add the funds back in without it counting towards your ISA allowance.