Our Adult Savings Accounts FAQs
Opening a plan
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Am I eligible to open a plan?
To be eligible to open a Stocks and Shares ISA or a 5 Year Fixed Rate Bond, you must be aged 18 years old and a UK resident.
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How many savings plans can I have?
You can open ISAs with more than one provider within the tax year, providing you don’t exceed the maximum annual allowance across all the ISAs you hold. The current maximum allowance for the 2024/25 tax year is £20,000. The ISAs you hold can all be the same type or you can choose a mixture of ISAs that you’re eligible for in a given tax year. It is important you check your eligibility for each type of ISA, and remember, you can only pay into one Lifetime ISA in a single tax year (up to £4,000).
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Can I open an ISA for my child?
You must be 18 to have a stocks and shares ISA. However, we do offer a Junior ISA, which is the child friendly version of the ISA. When the child turns 18, they can then transfer their Junior ISA into an adult ISA.
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Can I open a savings plan with a single lump sum payment?
You can open our Stocks and Shares ISA with a single payment from £100, and can then save flexibly up to the annual allowance.
You can also choose to open a 5 Year Fixed Rate Bond and get started with a minimum lump sum of £1,000 which has a guaranteed annual return over the five-year term.
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When will I receive my ‘ISA boost’ in my Stocks and Share ISA?
The ‘ISA Boost’ will be paid within 30 days of your first deposit being received into your Stocks and Shares ISA. Please note that this is dependent on the terms and conditions of the offer, including that it cannot be used in conjunction with any other offer.
Information about your plan
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Will I pay tax on the growth of my savings plan?
Stocks and Shares ISA
Our Stocks and Shares ISA is tax-efficient meaning that there will not be any income tax or capital gains tax to pay on the growth of the plan. Any money withdrawn can also be done so tax-free.
5 Year Fixed Rate Bond
We pay tax on the fund that generates any returns on the 5 Year Fixed Rate Bond, so if you are a basic rate taxpayer, you should not have to pay any further taxes. When your Bond matures, we’ll send you a Chargeable Event Certificate. If you are a higher-rate taxpayer, you should include this in your tax return as you may have to pay additional tax when the Bond matures or if money is withdrawn before the end of the plan.
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Is there an interest rate on the savings plans?
We aim to pay a quarterly bonus every three months into the plans, which will reflect the performance of the With Profits fund over the previous year.
Please remember that past performance is not a guide to how the plan could perform in the future, and although we can never take bonuses away once they have been paid, we may not pay one in years when performance is particularly poor.
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What is the annual allowance of my plan?
Stocks and Shares ISA
The annual ISA allowance can vary each tax year. The allowance is set by HM Government and can rise in line with the Consumer Prices Index. In the 2023/24 year, the annual ISA allowance is £20,000 – this applies across multiple savings plans. Therefore, if you have various ISAs, the total amount of money you contribute should not exceed the allowance.
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How much can I save each month in my plan?
Stocks and Shares ISA
You can save from £30 a month right up to a maximum of £1,666 a month to fulfil your annual allowance of £20,000. You can also invest lump sums in your account, as long as you don’t exceed your full annual ISA allowance. If you prefer to pay in lump sums, the initial deposit must be a minimum of £100, and then you can make additional lump sum payments from £10 at any point.
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What is the deadline to use my ISA allowance?
Your ISA allowance resets each year on 6th April, in line with the start of the new tax year. Any unused allowance does not roll over to the next year.
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Can I carry any unused ISA allowance over to the next tax year?
Current Government regulations mean that you cannot carry any unused ISA allowance over to the next tax year.
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How will the money in my savings plan be invested?
We will invest your money in our With Profit Fund, which holds a mix of assets including stocks and shares, property, gilts, bonds and cash. The market values of these assets can move up and down over time.
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What happens to my plan if I die?
Stocks & Shares ISA
Should you die while your Stocks and Shares ISA is still invested a death benefit will be paid to your estate. The amount payable will be 100% of your initial investment plus all bonuses which have been added and any final bonus which may be paid, subject to a minimum payment of 101% of your initial investment. If you are married or in a civil partnership, an ISA can be transferred to your Spouse or Civil Partner.
5 Year Fixed Rate Bond
The Bond also acts as a life insurance contract, so if you die prior to the maturity date of the plan and you are the sole plan holder, your estate receives a lump sum. The final amount paid out depends on how far you were into the plan. For example, if death occurs within the cancellation period, 100% of the money you invested goes back to your estate. This increases to 101% for in the first year of the policy and goes up by 1% each year of the policy, so in year five it would be 105%. You can find exact details in the plan’s terms and conditions.
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Is the money I invest with Shepherds Friendly protected?
Yes. Any money invested with Shepherds Friendly Society is covered by the Financial Services Compensation Scheme. The maximum level of compensation is currently 100% of the claim with no upper limit (correct at time of publishing – April 2017). The actual level of compensation you receive will depend on the basis of your claim.
Find out more information about the Financial Services Compensation Scheme.
Managing your plan
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How can I check the value of my investments?
You can view your investment value via your online login area or mobile app. Alternatively, you can phone our member services team.
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Can I withdraw money from my plan at any time?
Stocks and Shares ISA
You can withdraw money from your Stocks and Shares ISA whenever you want. To make a withdrawal, please email withdrawals@shepherdsfriendly.co.uk, please remember to include your plan number and send your request from the email address you have registered with us. We normally transfer your money directly to your bank account. Once we start processing your withdrawal, it usually takes five to seven working days for the money to reach your account.
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 Stocks and Shares ISA is a medium to long-term investment and that making regular withdrawals could reduce the value.
5 Year Fixed Rate Bond
You cannot withdraw from your 5 Year Fixed Rate Bond apart from when there are exceptional circumstances, such as diagnosis of a terminal illness, bankruptcy, insolvency, or sequestration.
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Will I have to pay tax or face a penalty if I withdraw money from my ISA?
Any money you withdraw from your account will be paid to you tax-free. There is no fixed penalty for withdrawing money from your ISA. However, in poor market conditions, we may apply a Market Value Reduction (MVR).
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If I withdraw money from my ISA, can I pay it back in later?
If you withdraw money from your ISA then this will still count towards your annual ISA allowance. Regardless of how much money you withdraw during a single tax year, you cannot invest more than your annual allowance in combined payments within that tax year. That means if you use your full allowance and then make a withdrawal, you cannot pay that money back in during the same tax year.
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How do I add money to investments?
Stocks and Shares ISA
You can add lump sum payments (subject to the maximum limit for any tax year) to your ISA via your online login area or mobile app. Alternatively, you can call our member services team.
5 Year Fixed Rate Bond
Once you have added your single lump sum into your 5 Year Fixed Rate Bond, you cannot make any further contributions. However, you can open additional 5 Year Fixed Rate Bonds if you want to, provided you do not exceed the maximum amount of £125,000.
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What do I do if I can’t afford my monthly payments for a while?
Stocks & Shares ISA
You can suspend or reduce your monthly Direct Debit at any point via your online login area or mobile app. Alternatively, you can call our Member Services Team to make adjustments to your Direct Debit.
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How do I inform Shepherds Friendly of change of my address?
You can update your personal details in your online login area or via the mobile app. Alternatively you can can call our member services team who would be happy to help.
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Is there a charge for managing the plans?
Stocks and Shares ISA
We deduct charges from your investment to cover our expenses and the cost of administering and managing your investments. Charges are deducted from the investment growth prior to bonuses being declared; this is currently an annual management charge of 1.5%.
5 Year Fixed Rate Bond
There are no explicit charges for the 5 Year Fixed Rate Bond. The plan has been created to incorporate any charges we may incur.
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How do I cancel my plan?
Stocks and Shares ISA
From the day you open your account you have 30 days to cancel your Stocks and Shares ISA. If you cancel within this timeframe, 100% of the money you put in will be returned to you. If you cancel within the 30 days you can also subscribe to another Stocks and Shares ISA in the current tax year.
If you cancel your Stocks and Shares ISA after the 30 days, you can request your cash-in value and we will organise the lump sum to be paid into your account.
Please note: After the 30 days cancellation period, under ISA rules you will be treated as though you have subscribed to a Stocks and Shares ISA and will therefore not be able to pay in to another one in the current tax year. However, you would be allowed to open a cash ISA with any unused allowance.
To cancel or cash-in your plan please email our Member Services Team on members@shepherdsfriendly.co.uk with your full name and plan number.
5 Year Fixed Rate Bond
Once your application is accepted, you can cancel your plan within the first 30 days of opening it. You can do this by contacting our Member Services team via email on members@shepherdsfriendly.co.uk or telephone them on 0800 526 249. If you do so within this period, we will refund all the money you have invested. After the 30 days cancellation period you will not be able to withdraw money from the Bond unless there are exceptional circumstances.
Our Member Services Team are always happy to help. You can call them on 0800 526 249
or email us at info@shepherdsfriendly.co.uk
