Stocks & Shares ISA
We do the hard work to nurture and grow your investment, helping you save for your future goals. When you invest, your capital is at risk.
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left to use your 2023/24 ISA allowance
What is a stocks and shares ISA?
An ISA (Individual Savings Account) is a government-backed tax-exempt savings plan, where you won’t pay income or capital gains tax on any money that you earn on your savings. A stocks and shares ISA, also known as an investment ISA, allows you to invest in shares, funds, bonds, and other assets. This gives your money more potential for growth than in a cash-based savings account.
Investing should always be seen as a medium to long-term commitment. This is because investments carry a level of risk, as they can go down as well as up, meaning that you may get back less than you put in.
About our Stocks & Shares ISA
Our tax-free Stocks & Shares ISA offers growth potential by aiming to pay you a quarterly bonus every three months. You can save over the medium- to long-term without paying income tax or capital gains tax on your savings.
- Save from £30 per month, or make online payments in single lump sums
- Aims for better returns than you’d get with Cash ISAs and savings accounts
- Save alongside Help to Buy, Lifetime or Cash ISAs up to your annual £20,000 ISA limit
Thanks to smart investment decisions by the fund managers, our Stocks & Shares ISA has been able to pay a bonus consecutively since 2008. However, the value of investments can fall, so you may get back less than you invest.
Choose a tax-efficient, long-term plan to grow your money
Simple to open and manage
Open a plan online in minutes with a single deposit or monthly Direct Debit payments.
Easy to manage
Control your plan online to pause, top up or change your premiums and track your savings.
We do the hard work
Our expert fund managers make smart investment decisions with a view to helping you grow your savings.
Opening a stocks and shares ISA
We’ve made opening a stocks and shares ISA straightforward, with the easiest way to do this being to follow our simple online application process.
To be eligible to open a stocks and shares ISA, you must be aged 18+ and a UK resident for tax purposes. You’ll also need your National Insurance number handy, as well as either your bank account details if you want to save monthly, or a credit/debit card if you’re saving with a single lump sum. You can set up an account in 10 minutes and you’ll then be able to manage your ISA online.
How much can I invest in an ISA?
You can save up to £20,000 into your ISA in the 2023/24 tax year. The amount that you can save is also known as your ‘ISA allowance’ and is set by the Government. Your ISA allowance can vary each tax year but has remained the same since April 2017.
The tax year is set by HMRC (HM Revenue & Customs) and ends at midnight on 5th April, meaning that you get a new ISA allowance on the 6th April each year. If you are looking to maximise the use of your ISA allowance, then it is important to remember that the deadline to do so is the 5th April.
You have the option to invest all your ISA allowance in a single stocks & shares ISA, or you can split it across other types of ISAs, such as a cash ISA. However, you need to be careful not to save more than the overall limit, otherwise you may become liable for tax on your returns.
How we manage your savings
Our stocks and shares ISA aims to deliver better returns than a cash ISA.
How we invest
Our Stocks & Shares ISA invests your savings in a with-profits fund. Unlike with an index-linked fund, a with-profits fund offers more predictable investment performance by actively ‘smoothing out’ the daily ups and downs of the market. In years when investments perform well, some of the profits are retained. This means that when market conditions aren’t as good, then we can still aim to pay a bonus. We’ve consecutively paid a bonus on our ISA since it was launched in 2008.
Our goal is to provide you with higher returns in the medium- to long-term, compared with what you’d get from a bank or building society account. So you should aim to invest for no fewer than five years.
However, in some circumstances, a market value reduction (MVR) could mean you get back less than you paid in, so the amount you receive can’t be guaranteed.
- Following periods of strong investment performance, you might get a final bonus
- Or, following periods of poor investment performance, you may get back less than the current value of your plan.
Where we invest
Our Stocks & Shares ISA is actively managed by Royal London Asset Management (RLAM).
Your savings will be invested across stocks and shares, equities, bonds, and property. This spread means you’ll benefit from a medium- to low-risk investment strategy, where the goal is to achieve greater growth than you’d get from a cash savings account.
Your savings will go into the Multi-Asset Strategies Fund (MAST), managed by Royal London. Your money will be invested responsibly, screening out or limiting investments which may be considered harmful and looking to incorporate some sustainable investments.
The annual management charge for this fund is 1.5%.
Of course, no investment is free from risk. The way this fund is managed means that your investment is at a medium to low level of risk. This may appeal to you if you prefer a smoother investment journey.
How we’re regulated
Shepherds Friendly is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Registration Number is 109997.
Why we’re trusted
We believe in keeping things simple, and putting our members first. That’s why we’re highly rated on independent review platforms, with over 2,750 reviews across REVIEWS.io and Trustpilot.
Please keep in mind that when you take out an investment product with us your capital is at risk and you may get back less than you have put in.
Everyone can benefit
We’re a financial mutual that’s built on fairness. Everything we do is for our members, not shareholders, and all profits made are paid to you or re-invested for your benefit.
Our members love that we do things the right way
Nine out of 10 members would recommend us for the way we help their savings grow.
Helping our members benefit for almost 200 years
The world’s changed a lot since 1826 but our idea of fairness remains the same.
When you’re member-owned, it matters more
We take the financial future of every member personally, because you’re one of us.
Take out a plan and kickstart your investment journey with up to £100 cashback into your ISA
Once your first deposit has been received, you will receive an ‘ISA Boost’ within 30 days. An ‘ISA Boost’ is cashback paid directly into your plan, equal to your first deposit, up to the value of £100. See our terms and conditions for more details.
Ready to start saving for your future?
Download this document for all the key information about our Stocks and Shares ISA. Remember that when you invest, your capital is at risk.
You can choose your investment style on the next page.
Find out more about our Stocks and Shares ISAs
Frequently asked questions
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What is a Stocks and Shares ISA?
An ISA is a government-backed plan which means you won’t pay tax on any growth in your savings. You can open our Stocks & Shares ISA from £30 a month or an initial lump sum of a minimum of £100.
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What is the ISA allowance/ISA limit?
For the 2023/24 tax year, the allowance is £20,000. The annual ISA allowance can vary each tax year. The limit is set by the government and usually rises in line with the Consumer Prices Index.
Find out more about Stocks & Shares ISA allowances.
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Can I have more than one ISA?
You can have one Stocks and Shares ISA and one cash ISA each tax year. However, you are able to transfer an ISA from one provider to another. For more information, please visit our page ‘Can I Have More Than One ISA?’.
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Can I withdraw from my Stocks and Shares ISA?
You can withdraw money from your ISA whenever you want. To make a withdrawal please email [email protected], please remember to include your plan number and to send your request from the email address you have registered with us.
Depending on your bank, or during particularly busy periods, this process can take a little longer and you may receive your money around 10 working days after we receive your request. If you need the money for a particular date or purpose, we recommend allowing plenty of time for your withdrawal to be completed, in case of any delays.
If you prefer, we can send you a cheque by post upon request.
However, you should remember that our ISA is a medium to long-term investment and that making regular withdrawals could reduce the value.
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Can I transfer an existing ISA?
Yes. You can transfer an existing ISA to us, using our transfer application. An ISA transfer allows you to move money from one ISA provider to another without losing the tax-free wrapper. If you try to move ISA funds by withdrawing then re-subscribing, rather than going through the proper ISA transfer process, the funds will lose their tax-free status and will count as a new ISA subscription.
Our Member Services Team are always happy to help.
You can call them on 0800 526 249.
Important things to consider
- Past performance cannot be taken as a guarantee of future returns.
- Bonus rates vary from quarter to quarter depending on the performance of our investments and in some years we may not pay out any at all.
- HM Revenue and Customs may change the tax status of an ISA in the future.
- Inflation and making regular withdrawals may affect the purchasing value of your investment in the future.
- If you have been invested through periods of poor investment performance, and you leave the fund, you may get back less than the current value of your plan. This is known as a Market Value Reduction (MVR)
When you take out an investment product with us your capital is at risk and you may get back less than you put in. All references to taxation are to UK taxation and are based on Shepherds Friendly Society’s understanding of current legislation and H M Revenue and Customs practice which may change in the future. Investment growth is through bonuses, the amount of which cannot be guaranteed throughout the term of the contract. Please ensure that you read the full terms and conditions of this plan which are available from your financial adviser or by contacting us directly.
Please note: No advice has been given by Shepherds Friendly, and if you are in any doubt as to whether a savings plan is suited to your needs, then you should contact a financial adviser. There may be a charge for financial advice, and the cost should be confirmed to you before any advice is given.