Regular Premium Investment ISA

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 an Investment ISA with Sheffield Mutual, up to £150,000 per calendar year, without affecting your annual ISA investment allowance.

You can also transfer all or part of the money saved in the current tax year with another provider to an Investment ISA. Where money saved in the current tax year is transferred, it will be treated as if it has been invested directly into the receiving ISA in that tax year.

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

If you have already transferred an ISA policy to Sheffield Mutual, you can choose whether to ‘top-up’ your existing policy or open a new one. See ‘Can I add to my investment?’ section for further information.

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. Call us on 01226 741 000 to make your payment by debit card over the phone, or you can make a payment directly into our bank account, our bank details can be found here. You can also send us a cheque payable to Sheffield Mutual.

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 realise the annual bonuses and potentially receive a final bonus.

The current maximum allowance is £20,000 or £1,666 per month 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 its investments, Sheffield Mutual will declare a bonus rate annually in 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 added to your policy monthly, net of charges, on a compound basis. Once declared, annual bonuses cannot be taken away (although a market value reduction may reduce the amount payable below the current value). You will receive a statement during April notifying you of the current value of your policy including bonuses. We will also set our interim bonus rate for the coming year in April which is the advertised rate you may see when you apply. The interim rate is not guaranteed and may go up or down before being declared.

Should you wish to close, transfer or withdraw funds from your ISA during adverse investment conditions, the Society may apply a market value reduction (MVR) 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.

Yes, you can start, stop or vary your payments during a tax year.

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 (three years plus).

Yes, you can subscribe to multiple ISAs of the same or different types (stocks and shares ISAs, cash ISAs and innovative finance ISAs), and into one lifetime ISA, subject to HMRC tax year limits. Subscriptions can be made with the same or different providers.

For the current tax year, each adult has an annual ISA investment allowance of £20,000, which you can split as you choose between a stocks & shares ISA, a cash ISA an innovative finance ISA and, if you are between the ages of 18 and 40, a lifetime ISA.

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 who is also a resident in the UK or, if not, 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. 

The Society invests in a range of different assets with the aim of providing a higher return in the medium to longer term than that achievable in a bank or building society account. We will look to achieve this by maintaining a spread of investment assets that will provide a medium to low risk ISA, making it an option for individuals with a more cautious approach to investing their money.

For more details of the Society’s investment strategy please refer to section 5 of the Principles and Practices of Financial Management (PPFM).

Types of assets we invest in are:

• Shares of companies - we have exposure to UK based and overseas companies to provide diversification.
• Fixed interest investments such as government gilts and corporate bonds.
• Property - the Society owns a property portfolio which provides rental income and offers capital growth.
• Commercial mortgages from a small portfolio providing a fixed rate return.
• Cash

The proportion held in each of these will vary depending on market conditions. We can provide you with a guide to the spread of investments. 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 the Investment ISA will not normally fluctuate from day to day.

We will pay the policy value plus 1% 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.

When you open a policy with us, you will automatically become a member of the Society. 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, such as optical and dental grants, as well as exclusive access to a range of discounts and offers.

Need some further assistance? Our friendly and knowledgeable 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 financial 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.

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.

An ISA for people between the ages of 18 and 40, designed to save for a first home and 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. This would only normally happen during adverse market conditions to protect members who remain invested in the 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 or losses with the policyholders. Returns are ‘smoothed’ whereby some profit is held back in good years to maintain returns in less positive investment years.

Earning bonuses on bonuses, not just on the amount paid in.

The bonus that, once declared is added to your policy each year.

A bonus that may be added to your policy when it matures.

The bonus that is announced and used in the ‘interim period’ before the annual bonus is declared each year.

When you close your policy and are able to take any additional bonuses that are being paid at that time.