Introduction

Individual Savings Accounts (ISAs) have revolutionised savings in the UK. After their initial trial period, the Government has confirmed that they are here to stay.

Friendly Societies have been able to offer ISAs since the year 2000, and we were in at the start. Like our other tax exempt business, ISAs enjoy higher rates of bonus and therefore higher returns than traditional savings products, as we do not have to pay any tax on the interest and capital gains we make on the money you invest with us.

ISAs are also much more flexible than other forms of saving -

• You can mix lump sums with regular savings.
• You can stop premiums or cash in when you wish.
• You can choose a different provider each tax year.
• You can transfer ISAs from one provider to another.

Each eligible person can have two types of ISA at the same time, a Cash ISA and/or a Stocks & Shares ISA, and in each tax year you can choose a separate provider for each type if you wish. There are however limits on the amount of money you can pay into your ISA(s) in each tax year: -

• An overall maximum of £10,200, split between the two types and
• a maximum of £5,100 into a Cash ISA.

So for example in one tax year, a person could invest:

• £10,200 into a Stocks & Shares ISA or
• £5,100 into a Cash ISA plus £5,100 into a Stocks & Shares ISA or
• £3,400 into a Cash ISA plus £6,800 into a Stocks & Shares ISA

The MPFS ISA is a Stocks & Shares ISA, so you can invest in a Cash ISA elsewhere if you wish.

We are happy to answer any questions you may have on our ISA or any other MPFS product.