Individual Savings Account (ISA) - Your questions answered
Am I eligible for
an ISA?
How can contributions be
paid?
How will I know how much my savings are
worth?
What
if I need to get to my savings or cancel my
plan?
Will
I be able to increase my contributions?
Will
I be able to reduce or stop my savings?
What
are the charges?
What
are stakeholder schemes?
What is the tax situation on my
ISA?
How
do savings affect eligibility for Social Security
benefits?
Can
ISAs be transferred?
Am I eligible for an ISA?
You are eligible for a Forester Life ISA if you are aged 18 or over
and UK resident for tax purposes. Everyone has their own ISA
allowance, so if you have a partner they can take advantage by
starting their own tax-free savings.
You cannot subscribe to another stocks and shares ISA at the same
time as your Forester Life ISA. However, subject to the ISA limits,
you can subscribe to a Cash ISA with another provider.
You must remain a UK resident to continue your subscriptions
to an ISA.
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How can contributions be
paid?
Lump sum investments can be made by cheque or direct credit.
Regular savings are collected monthly by direct debit or standing
order.
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How will I know how much my savings
are worth?
Every year we will send you a statement showing the value of your
plan.
You can view current unit prices on
our website or by calling our Unit Price Information Line free
on 0800 990011.
You should monitor the value of your plan and the level of your
savings to ensure that it is sufficient to meet your goals.
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What if I need to get to my savings or cancel my
plan?
You should view your Plan as a medium to long-term investment
scheme. However, there is no set term so you can cash-in part or
all of your savings when you need to.
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Will I be able to increase my
contributions?
We
will automatically increase the amount of your regular savings each
year to help you keep pace with inflation.
You can make additional increases to your Plan at any time subject
to a minimum of £5 for regular savings and £20 for lump sums.
You will not be able to increase your subscriptions to more
than the HM Revenue and Customs (HMRC) maximum limits.
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Will I be able to reduce or stop my
savings?
Yes, if you need to you can stop your regular savings at any time.
You can also reduce the amount you save.
Reductions are subject to a minimum of £5 and a minimum ongoing
saving of £20.
If
you wish to cancel the automatic increases, you should tell us at
least 14 days before the increase is due.
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What are the charges?
The Forester Life ISA is a medium term stakeholder investment
scheme and as such meets the stakeholder standard for ‘capped
charges’.
There is an annual charge of 1.5% of the value of the funds you
accumulate. If your fund is valued at £250 throughout the year,
this means that we deduct £3.75 that year. If your fund is valued
at £500 throughout the year, this means that we deduct £7.50 that
year. After 10 years these deductions would reduce to £2.50 and
£5.00 respectively.
There are no other charges to you.
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What are stakeholder
schemes?
Stakeholder products have been introduced to provide a
straightforward and low-cost way of investing and saving.
In order to qualify as stakeholder, a medium term investment
scheme must satisfy Government standards including minimum payments
from £20, a range of payment methods, charges of no more than 1.5%
pa of fund value (reducing to 1% pa after 10 years) and a risk
controlled, shares based investment.
Schemes that meet stakeholder conditions are not necessarily
suitable investments for a customer, nor do they offer any
guarantee of performance.
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What is
the tax situation on my ISA?
Any sum paid to you from your Forester Life ISA is completely free
of income and capital gains tax, regardless of your individual tax
circumstances. However, the fund in which your subscriptions are
invested is unable to reclaim any tax credits on share
dividends.
The tax benefits of your ISA cease from the date of death. Benefits
paid out on your death may be subject to inheritance tax.
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How do savings affect eligibility for
Social Security benefits?
You can have savings of up to £3000 without affecting your
entitlement to social security benefits.
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Can ISAs be transferred?
Yes, the ISA rules allow you to switch between ISA managers and
your Forester Life ISA can be transferred at no additional
cost.
You can transfer existing stocks and shares ISAs from other
providers to Forester Life. From April 2008 we can also accept
transfers from Personal Equity Plans(PEPs) and Cash ISAs you
hold elsewhere.
For more information about how to transfer into or from your
Forester Life ISA, please contact our Customer Services Team on
08457 990011,
e-mail: customer.services@foresters.co.uk or
write to the Customer Services Team, Forester Life, FREEPOST
SEA 8258, Bromley BR2 9BR.
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