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Your guide to ISAs with Unity Mutual

Published 1st May 2019 - As more investment products hit the market place we thought we’d take some of the mystery out of ISAs with this handy guide for first-time investors (or refresher guide for savvy savers!) and answer some of the most commonly asked questions. Here is your guide to ISAs with Unity Mutual.

What is an ISA?

ISA stands for ‘individual savings account’. It is a tax-free way of saving or investing with a set limit every year of how much you can put into it.

What ISAs are available?

There are a variety of ISAs that are available in the market including cash and stocks and shares options. At Unity Mutual we offer three different stocks and shares ISA options: a Lifetime ISA, a Flexible ISA and a Junior ISA.

Who can open an ISA?

You must be aged 18 or over and be a resident in the UK or Crown employee (or their spouse/civil partner) working overseas to open a stocks and shares ISA and aged 16 or over to open a cash ISA. 

How much can you put in an ISA?

The ISA saving limit is decided by HMRC at the start of every tax year so the limit changes every April. From 6th April 2018, the limit was set to £20,000, however each ISA has a different limit. The Lifetime ISA for example only allows you to invest up to £4,000 a year.

The more money you’re able to save before the new tax year the better in order to make the most of your tax-free allowance for that year.

Which ISA should I go for?

That depends on what you are saving for. Below are some options that include ISAs for flexible saving, first-time buyers and for children.

The Lifetime ISA

Unity Mutual’s Lifetime ISA enables young people aged 18-39 to save up to £4,000 a year tax-free towards their first home and receive a 25% bonus from the government.

In addition to the government bonus, we are currently offering customers an interest rate of 1.5% on top of savings to give you a little extra boost with 100% capital protected.

It’s a great option if you’re struggling to get onto the property ladder and in need of a little extra help. Click here to see terms and conditions.

The Flexible ISA

Unity Mutual’s Flexible ISA is a tax-free savings account that allows you to pay in and take out your money as and when you need it (subject to the criteria detailed in our terms and conditions).

Unlike savings accounts that pay regular interest, Unity Mutual’s ISA invests in the stock market, with the aim of giving better growth over the long-term.

Your money goes into our Unity Mutual Equity Fund, which is invested in over 600 UK companies to track the average performance of the stock market. This saves you from having to make any tricky investment decisions, and helps spread the risk by investing in a large number of companies.

Of course the value can go down as well as up and the proceeds will depend on the investment performance of the Fund, which cannot be predicted. Growth cannot be guaranteed, and you may receive back less than the amount you paid in.

However this is why the Flexible ISA is designed as a medium to long-term investment as it aims to benefit from the greater growth potential of the stock market. Click here to see terms and conditions.

The Junior ISA

Our Junior ISA is a simple way of saving for your child, grandchild, niece or nephew to help give them a head start when they reach the age of 18. You can pay in as little as £10 a month, and is a straightforward way of investing over the long-term in the stock market.

Of course the value can go down as well as up and the proceeds will depend on the investment performance of the Fund, which cannot be predicted. Growth cannot be guaranteed, and you may receive back less than the amount you paid in. However this is why the Junior ISA is designed as a long-term investment and aims to benefit from the greater growth potential of the stock market.

Any parent or guardian can open a Junior ISA for a child who lives in the UK and doesn’t have a Child Trust Fund, however a Child Trust Fund can be transferred into a Junior ISA. Anyone can pay into the account too including family members and friends, up to a maximum of £4,368 a year (current limit for 2019/2020 tax year). Click here to see terms and conditions.

If you’d like to find out more about savings options with Unity Mutual click here or give us a call if you have any further questions about ISAs: 0161 214 4650.

We can’t give you any advice on whether our ISAs are right for you. We can only give you factual information. If you’re in any doubt about which 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 phoning IFA Promotion on 020 7833 3131 or via 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.

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