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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