Typical questions asked about our Stocks and Shares ISA
Who can save in a Stocks and Shares ISA?
Anyone over the age of 18, or who will be 18 during the tax year in which the ISA is opened. You must also be resident and ordinarily resident in the United Kingdom, or if not, be performing duties as a Crown employee serving overseas and paid out of the public revenue of the United Kingdom – or married to such a person.
How do my savings grow?
Depending on the performance of its investments, the Sheffield Mutual will declare a bonus rate annually in April and this will be applied to your policy. Obviously the amount of bonus credited will depend upon how much you have saved and for how long. You will receive a statement during April notifying you of the amount of bonus and the present value of your policy.
Where are the funds invested?
The Society will invest its ISA funds in assets that will include Property, Equities and Fixed Interest.
Can I withdraw from my Stocks and Shares ISA?
Yes, you can withdraw a minimum of £250 at any time or you can close your plan. However, if you withdraw from or close your policy in times of adverse investment conditions, a Market Value Reduction may be applied, which, in some circumstances, result in a loss of capital.
Are there any charges?
Yes, the Society will deduct 2.5% of the value of the policy fund in Year 1 and 1.5% each year thereafter to cover administration and expenses.
What happens if I die?
On early death, the Society will pay 101% of the policy value either to the surviving spouse or the individual’s estate. Interest will be credited tax-free up to the date of death but from then until the date that the money is paid it will be subject to tax at the rate applicable at the time.
What are CAT standards?
These are criteria set by the Treasury which relate to Charges, Access and Terms – and in order to be classified as CAT standard an ISA must meet all of these. They are not a measure of quality or performance and care should be taken to obtain the right product to meet your needs. The Society’s Stocks and Shares ISA is non-CAT standard because our minimum premiums are above the level set.
How do I start my Stocks and Shares ISA?
You should study the Key Features document and, providing you do not need any advice, complete and sign the application form and standing order authority (where applicable) and return them to:
Freepost RLUC-XKZE-RJAT
Sheffield Mutual Friendly Society
3 Maple Park
Maple Court
Wentworth Business Park
Tankersley
Barnsley
South Yorkshire
S75 3DP
or by telephone 01226 741000
or via email on enquiries@sheffieldmutual.com
Do I need to provide any additional information?
In order to comply with regulations, the Society will require confirmation of your identification and address. We will therefore ask to see documents such as a passport or driving licence and utility bills or bank statements before issuing a policy.
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