Single Premium Investment ISA

Invest or transfer a lump sum with our Investment ISA, and the best part? It's tax-free

  • Current interim bonus rate of 3.50% (before charges)
  • Potential for tax-free growth through annual and final bonuses
  • Transfer an existing ISA to us
  • Capital at risk. During adverse investment conditions you may get back less than you invested

Product Information

  • About this policy

    Our Single Premium Investment ISA is a convenient and flexible way to invest a lump sum, and the best bit? It's tax-free.

    Our ISA also has the potential to out-perform cash ISAs over the longer term, whilst smoothing out the short term ups-and-downs often associated with stocks and shares ISAs.

    There is no specific term for our ISA, but to take full advantage we suggest saving for the medium to long-term. Visit out FAQs for further information.

  • What are they?

    Simply put, ISAs are investments with tax advantages, which means that the money you put in will grow tax-free.

    The maximum allowance for ISAs is £20,000 for the current tax year (which runs from 6 April to 5 April).

    Four types of ISA are available - stocks and shares ISAs, cash ISAs, innovative finance ISAs and lifetime ISAs. Sheffield Mutual only offers a stocks & shares ISA, in the form of a with-profits insurance policy, which is designed for medium to long-term investments of this kind.

    We refer to this as an Investment ISA because the with-profits fund invests in a range of different assets including property and bonds as well as the stock market. The fund is managed to provide a low-medium risk investment. See FAQ for further information.

  • Who are they for?

    Anyone over the age of 18 who is a UK resident can open a plan. More information on this can be found in our FAQs below. Please be aware that you cannot pay into a stocks & shares ISA with more than one provider in a single tax year.

  • Why open one?

    Have a lump sum you've been meaning to invest, unhappy with your cash ISA rate or perhaps want to reduce the risk by moving an existing higher risk stocks & shares ISA? Our Single Premium Investment ISA could be the perfect way to save for something special. There is also the potential for tax-free growth through annual and final bonuses.

    The current interim bonus rate for 2020/21 is 3.50% (before a management charge of 1.50%).

Calculator

The policyholder must be 18 and over and be a UK resident or a crown servant living overseas or their spouse or civil partner.

What would you like to do?

Please enter your date of birth
Years
Years
Please select a term between 3 and 25 years
Please choose an amount between £300 and £150,000
  • Please choose an amount between £300 and £20,000
Please note: You can also enter the term and amount in the boxes instead of using the slider. Quotes are for illustration purposes only and what you get back depends on how your investment grows, meaning you could get more or less than this.

You might get back the following amounts, by investment growth per annum:

2%

 

5%

 

8%

 

Please read the Key information document and Important information documents before applying for a Single Premium Investment ISA.

How to apply

Step one

Confirm you have read and understood our Product and Key Information

Step two

Decide how much you want to invest or transfer

Step three

Complete our straightforward online application

Step four

Confirm your details are correct and submit your application

Ready to proceed?

Other ways to apply

Apply over the phone

Need more information or prefer to apply over the phone? We're happy to go through any questions you have, as well as taking you through the application process over the phone. Either call us on 01226 741000, or click the link below and we can call you back at a time to suit you.

Download an application pack

Want a bit more time to fill in your application? Download an application pack and send it back to us when you're ready. If you don't have access to a printer, we can send you an application in the post.

We're FSCS protected

We are a member of the Financial Services Compensation Scheme (FSCS), which is the UK's statutory compensation scheme for customers. The products we offer are classed as long-term life insurance policies with a savings element, which means an eligible claim in the event of the firm’s insolvency could be protected up to 100% with no upper limit. Investment loss is not covered.

How it works

  • Opening a Single Premium Investment ISA

    Applying online is quick and easy and should take no longer than ten minutes. You also have the option of applying over the phone or by post - it's completely up to you.

  • How are bonuses calculated?

    Depending upon the performance of its investments, Sheffield Mutual will declare a bonus rate annually in March or April and this will be applied to your policy for the tax-year. The amount of bonus credited will depend upon how much you have saved and for how long. Bonuses, when declared, are calculated daily (after deducting charges) and added to your policy monthly, net of charges, on a compound basis. There is also the possibility of a final (terminal) bonus on closure of the ISA. Bonuses are not guaranteed.

  • Any guarantees?

    Bonuses are not guaranteed to be paid. Our Investment ISA sits within a life insurance wrapper, so the policy will payout 101% of the policy value at the date of death to either your personal representative(s) or to your estate.

  • Can I make withdrawals and top up my ISA?

    You can withdraw a minimum of £250 at anytime. However, the plan is designed for medium to long-term investment and if you decide to take withdrawals or close your plan during adverse investment conditions a market value reduction may be applied - this may result in you getting less back than you paid in.

    You can also top up your ISA at any time (the minimum additional top up is £100). More information on withdrawals can be found in our FAQ section below.

  • What about charges?

    We will deduct 1.5% of the value of the ISA policy fund each year to cover administration costs and expenses. The annual charge is normally deducted from the declared annual bonus amount before it is added to your policy. However, it would be deducted from the policy fund should the bonus be less than the annual charge.

Frequently asked questions

Our most commonly asked questions surrounding the Investment ISA can be found below.

Yes subscriptions can be transferred freely between cash, stocks and shares and innovative finance ISAs.

You can transfer some or all of the money saved in previous tax years with another provider to us, up to £150,000 per calendar year, without affecting your current annual ISA investment allowance.

If you want to transfer an ISA to us saved in the current tax year, you would need to transfer the whole amount saved. Any money that is transferred in the current tax year will be treated as if it has been directly invested into our Investment ISA in that tax year.

Transfers from previous tax years will be held in a separate ISA transfer policy from any current tax year subscriptions.

You will then be able to save up to the full remaining balance of the allowance for that tax year, or you may within the overall limit subscribe to a cash ISA later in the current tax year without breaking the ISA rules. Transfers from previous tax years will be held in a separate ISA transfer policy from any current tax year subscriptions.

Yes, providing you don’t exceed the maximum annual allowance you can add to your ISA at any time during the tax year. If you are not paying in every month by direct debit, the minimum additional investment is £100.

In future tax years you can top up your existing Sheffield Mutual policy or you may, if you prefer, open a new policy for each tax year. Having separate policies may provide you with greater flexibility in the future. For example, if you have separate policies for each tax year and you want to start withdrawing funds, you could perhaps surrender one of the older tax-year policies to crystalise the annual bonuses and receive any possible final bonus.

Yes, the current maximum allowance is £20,000 or £1,666 per month (please see Regular Premium Investment ISA if you wish to save monthly) for the tax year which runs from 6 April to 5 April. The minimum you can invest in the Sheffield Mutual Investment ISA is £30 per month or a single initial lump sum of £300. However, if you save any part of your annual allowance in a cash ISA, an innovative finance ISA or lifetime ISA with another provider, this should be deducted from the overall limit.

Depending upon the performance of our investments, we will declare a bonus rate annually in March or April and this will be applied to your policy for the tax-year. The amount of bonus credited will depend upon how much you have saved and for how long. Bonuses, when declared, are calculated daily (after deducting charges) and added to your policy monthly, net of charges, on a compound basis. You will receive a statement during April notifying you of the amount of bonus and the current value of your policy. There is also the possibility of a final  bonus on closure of the ISA. Bonuses are not guaranteed.

You will receive a statement during April notifying you of the amount of bonus and the current value of your policy.

Yes, you can stop or vary your payments during a tax year. However, if you do not make a payment in the whole of a tax year, and you want to start paying in again the following year, you will have to make a new application.

There is no specific term, but to take full advantage, investing in this type of policy should be viewed on a medium to long-term basis.

Yes, you can subscribe to a maximum of one stocks & shares ISA, one cash ISA, one innovative finance ISA and one lifetime ISA each tax year with either the same or a different provider. For the current tax year, each adult has an annual ISA investment allowance of £20,000, which you can split as you choose between the ISAs mentioned above, and, if you are between the ages of 18 – 40, a lifetime ISA (up to £4,000).

Under current legislation, which may change in the future, your returns will be completely free of income or capital gains tax and do not need to be declared on your tax return. ISAs are available to people who are resident in the UK for tax purposes.

Anyone over the age of 18 or who will be 18 during the tax year in which the ISA is opened, but only after their 18th birthday. You must also be resident in the UK or, if not, be performing duties as a Crown employee serving overseas and paid out of the public revenue of the United Kingdom, in a civil partnership or married to such a person. You cannot pay into a stocks & shares ISA with more than one provider in a single tax year.

We invest in a range of different assets with the aim of providing a higher return in the medium to long-term than is achievable with a bank or building society account. Sheffield Mutual's with-profits fund is managed to provide a low to medium risk investment, appealing to anyone with a more cautious approach to investment. Our investments include property, shares of UK companies, government gilts, corporate bonds, commercial mortgages and cash.

The proportion held in each of these will vary depending on market conditions. You'll be pleased to know that we seek to adopt an ethical approach to investing and it is our policy not to invest knowingly or directly in industries relating to armaments, tobacco, gambling or pornography.

Unlike stocks & shares ISAs that are invested directly in shares or in a share-tracking index, the money you invest in our Investment ISA will not normally fluctuate from day to day. However, should you wish to close, transfer or withdraw funds from your ISA during adverse investment conditions, the Society may apply a Market Value Reduction to the policy fund, which could, in some circumstances, result in you receiving back less than you have paid in. Therefore the amount you will receive on repayment is not guaranteed.

On early death, we will pay 101% of the policy value at the date of death to either your personal representative(s) or to your estate. Bonuses will be credited tax-free until the date of death. Your spouse or civil partner will be able to pay into an ISA in their own name an amount equivalent to the proceeds of your ISA at the date of death, in addition to their own ISA allowance.

No, this plan does not include any life cover. However, we do offer plans that include life cover, which we will be pleased to provide information about. Please visit the life insurance section on our website.

When you open a policy with us, you will automatically become a member of the Society (adult policyholders only). As well as being able to have your say on how the Society is run each year, you will also have access to various discretionary benefits when available, such as optical and dental grants, as well as exclusive access to a range of discounts and offers.

Need some further assistance? Our team would be more than happy to provide you with factual information about our products and services, so you can make your own decision about how to proceed. However, we are unable to give any advice or recommendations on the suitability of our products. If you are unsure, you should seek advice from a qualified financial adviser, which may incur a fee.

To comply with regulations, the Society will require confirmation of your identification and address. We’ll aim to do this using an electronic verification system, but reserve the right to ask for appropriate documentation from you, if this is not possible.

All references to taxation are based on the Society's understanding of current tax legislation and practice, which may change in the future.

Jargon Buster

Need help with some of the language we've used? Click here for our Jargon Buster.

An amount we will add to your policy linked to how well the with-profits fund has performed. These can be annual bonuses or a final bonus, added when your ISA is closed or transferred.

A tax-free deposit account which earns interest. Although less risky and more certain than a stocks & shares ISA, the returns may be relatively modest over the longer term.

Income from shares paid by companies to shareholders.

An ISA qualifying investment relating to peer to peer loans. These are not currently covered by the Financial Services Compensation scheme (FSCS).

An ISA for people between the ages of 18 and 40, designed to save for a first home or retirement.

An adjustment made to the amount we pay out, should your policy fund be worth more than your fair share of the with-profits fund.

The value of the amount paid in (less any withdrawals) plus any bonuses added to your ISA.

A tax-free wrapper for investments other than cash deposits.

The name given to a type of fund which normally contains a mix of assets and shares the profits with the policyholders. Returns are ‘smoothed’ whereby some profit is held back in good years to maintain returns in less positive investment years.

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Who we are

We're a mutual friendly society, which means we are owned by our members (customers), with no shareholders to satisfy.

Our members are the people we care about the most. Any surplus profit is distributed to provide you with the best possible returns combined with the highest standards of personal service and ethical business practices.

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