A Guide to ISAs

Wondering where you should put your hard-earned money for safe keeping? You’ve probably heard of ISAs – or Individual Savings Accounts – but do you know what benefits they can bring?

ISAs offer tax-free interest payments, which means you may get more for your money – ideal if you’re saving for something specific.

You may know that there is more than one type of ISA, too – but which one is best? In this piece, we delve into ISAs and the different ones available here at Unity Mutual. Read on…

Stocks and Shares Flexible ISA

Making investing easy over the medium to long-term, a flexible ISA like our Stocks and Shares ISA bases your investment on the growth potential of the stock market.

Opening a stocks and shares flexible ISA may sound like a daunting prospect, which is why we’ve laid out all the details you may need before opening an account – find them over here.

Allowing you to pay in up to £20,000 this financial year, or take out as much money as you like – and when you like – our Stocks and Shares ISA invests in the stock market. The aim? To give you better growth over the long-term. What does that actually mean? Put simply, it means you’ll have the potential to end up with more money than you started with.

With a stocks and shares ISA, you won’t pay tax on the income/capital gains. Bear in mind, though, that the market can go down as well as up so you could get back less than has been paid in.

How does the Stocks and Shares Flexible ISA work?

When you open up a Stocks and Shares Flexible ISA with Unity Mutual, your money will go into our Unity Equity Fund. This is invested in over 600 companies here in the UK, to track the performance of the stock market.

Saving you the job of making any tricky investment decisions, it helps spread the risk by investing in a large number of businesses.

Why this account might work for you: It’s flexible – and it allows you to pay in more money when you want – or draw out your funds when you want.

Lifetime ISA

Are you keen to buy your first home? Or perhaps you’re considering starting a savings pot ahead of retirement? If so, a Lifetime ISA (or a LISA, for short) might be an option for you.

Ours offers a market-leading interest rate of 1.5%* and a 25% government bonus added onto what you save.

How does our Lifetime ISA work?

With our Lifetime ISA, you can save up to a maximum of £4,000 in the current tax year. The Government will give you a 25% bonus on top of anything you deposit into your account.

What that means is this: if you save the maximum of £4,000 into the Lifetime ISA for two years, you’ll have saved £8,000. Add to that the 25% from the Government and you’ll have an impressive £10,000 – ideal if you’re keen to put down a deposit on a first house.

Why this account might work for you: A savings goal makes this account beneficial for anyone, including those who are ready to buy their first property, or people who want to put away money for retirement.

Please see https://www.unitymutual.co.uk/savings-for-you/lifetime-isa/ for full terms and conditions

Junior ISA

So, you’ve heard all about our Stocks and Shares Flexible ISA for adults; did you know we offer a kids’ version too?

How does the Junior ISA work?

Our Junior ISA is a tax-free way of saving for your child’s future – and you only need to deposit £1 to open the account.

You can open the account for your own child, or your grandchild but anyone can add funds to the ISA. Helping make sure they get a head start when they reach the age of 18, the account allows you to invest a lump sum (or a regular monthly contribution). You could even choose to invest a lump sum and a monthly amount.

Of course, there are benefits to be enjoyed too. It’s tax-free – and you can pay in as little as £10 a month, up to £9,000 this financial year. Interest rates are currently at a record low – and there is a low management charge of just 1%. If you’re considering opening a savings account for your child, now could be the time.

Like our Flexible ISA be note the money is invested in stocks and shares. As such the value can fall as well as rise, you could get back less than has been paid in

Why this account might work for you: it allows you to give your child a financial boost in later life, as well as teaching them about managing their money from a young age.

Please see https://www.unitymutual.co.uk/savings-for-children/junior-isa/ for full terms and conditions.

Have any questions about any of the ISAs outlined in this guide? Do not hesitate to get in touch with the Unity Mutual team, who will be more than happy to tell you more.

If you need financial advice

If you’re in any doubt about whether this product is right for you, it’s a good idea to talk to an Independent Financial Advisor (IFA). You can find a local financial advisor by visiting  www.unbiased.co.uk. You may need to pay for a financial advisor’s help, so make sure you ask them about their fees first.

Terms and conditions apply to our products. For more information read the product’s Terms & Conditions and the Key Information Documents.


Need help?

Look at our
Customer Centre