Shrewd savings plan ISA FAQ
What is an ISA?
An ISA (Individual Savings Account) is the tax privileged personal investment plan which replaced PEPs and TESSAs on 6th April 1999
You can currently invest up to £7,200 into an ISA in each tax year. Up to £3,600 can be invested in cash and the remainder into stocks and shares. Alternatively, the full £7,200 can be invested into stocks and shares if you wish.
The value of tax benefits depends upon individual circumstances, and may be subject to change in the future.
What sort of ISA is the NFU Mutual Shrewd savings plan ISA?
The Shrewd Savings Plan ISA is a stocks and shares ISA.
NFU Mutual does not offer a Cash ISA Option.
Am I eligible?
To open an NFU Mutual Shrewd Savings Plan ISA you must be aged between 18 and 80yrs and be resident and ordinarily resident in the UK for tax purposes or, if not so resident, you perform duties which, by virtue of Section 132(4)(a) of the Income and Corporation Taxes Act 1988 (Crown Employees Serving Overseas) are treated as being performed in the UK
or you are married
to or a civil partner of a person who performs such duties.
What does the Shrewd savings plan ISA invest in?
Your investment will notionally buy units in the With-Profits Fund of NFU Mutual. The objective of this fund is to achieve balanced growth.
How much can I invest?
You can currently invest up to £7,200 in the Shrewd Savings Plan ISA each tax year.
Regular savings:
- If you want to contribute on a monthly basis, the current minimum amount is £25 per month.
- The maximum monthly amount for a Shrewd Savings Plan ISA is currently £600.
- You can stop, restart, increase or decrease your regular amounts at any time.
Lump sum investments:
- The minimum lump sum you can contribute to open your ISA is £1,000.
- £1,000 is also the minimum lump sum top up you can make (or less if required to reach the overall maximum investment limit).
- If regular premiums are being paid and you stop or reduce them, you may not meet any target amount that has been projected.
Can I take money out of my shrewd savings plan ISA?
Yes. You can withdraw all or part of your investment at any time by writing to us.
The minimum withdrawal you can currently make is £100, and you must leave at least £500 invested.
If you make withdrawals, the amount of your capital will reduce if the growth of your investment does not exceed the level of withdrawals taken.
How does the Shrewd savings plan ISA work?
Every policy anniversary, or thereabouts, you will receive a statement which will show you the value of your policy and tell you about its performance. The value of your policy at any time depends on the number of units you have in the Fund and their price.
For the With-Profits Fund, the value of your investment may be reduced to reflect market conditions on full or partial withdrawal, at any time other than on the bondholder's death. This reduction is called a Market Value Adjustment (MVA). This could reduce the value of your initial investment and is most likely to happen following a large or prolonged fall in the stock market, or after a period where investment returns are regularly below the level we normally expect.
Can I use an NFU Mutual Shrewd savings plan ISA to accept a transfer from another provider?
Yes. You can transfer your investment from another stocks and shares ISA. You can also transfer your investment from the NFU Mutual Stocks and Shares ISA (unit linked investment plan) if you wish.
We can accept transfers from cash ISAs.
How much might it pay out?
You can request an illustration of potential benefits by calling our Customer Services Team free on 0800 622 323.
Full details of this policy can be found in the Shrewd Savings Plan ISA Key Features Document which should be read and understood before you decide to proceed with any purchase. You can request this via our contact us page or by calling our Customer Services Team free on 0800 622 323.
The above information is based on NFU Mutual's understanding of current HMRC practice and legislation which is subject to change.
For security and training purposes, telephone calls may be recorded and monitored. Your enquiry may result in a call from an NFU Mutual Financial Consultant or Customer Telephone Adviser who advises on NFU Mutual's products and services and in special circumstances those of other providers.
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