Although the ISA grows through bonuses, bonus rates are not guaranteed and in exceptional circumstances could be nil.

The advised ISA does not include any early surrender penalties.

If they cash in, or make a withdrawal, a Market Value Reduction (MVR) may be applied, which, if not made on one of the guaranteed MVR free dates, could reduce the amount they receive and they might receive back less than invested. A MVR may be applied if there’s a significant fall in the value of the stocks and shares, or other investments we have invested in.

If they have a cash ISA, Innovative Finance ISA or a Lifetime ISA, any remaining ISA allowance can be invested into a Healthy Investment stocks and shares ISA.

If they invest into a Healthy Investment stocks and shares ISA they will not be able to invest in a stocks and shares ISA with another provider during the same tax year.

Inflation will reduce what the investment will buy in the future.

Tax rules can change at any time.

If your client decides to invest in a Healthy Investment stocks and shares ISA, they will be investing into our Ethical With-profits Fund, which includes a mix of stocks and shares, fixed interest bonds, commercial property and cash deposits. The mix of assets held changes over time.

Our Ethical With-profits Fund does not knowingly invest directly in companies in the alcohol, tobacco and arms industries and gambling and pornography providers.

The Society aims to provide a consistent return by smoothing the investment return to avoid volatile fluctuations in the value of your investment. Smoothing may not protect them against long term or sustained falls in the value of investments.

For further information on our Ethical With-profits Fund please click here.

Reversionary bonus

A reversionary bonus is an annual bonus which, once added to your ISA, can never be taken away.

The level of bonus depends on investment performance, our expenses and our solvency margin over the previous year as well as the Board’s expectations of future performance. The level of bonus also reflects the capital and bonus guarantees. The rate of bonus can change every year and could in exceptional circumstances be nil.

All reversionary and interim bonus rates are net of charges. The bonus rate declared is the bonus rate you receive.

The Healthy Investment Ethical ISA was launched on 6 April 2019, therefore annual bonuses prior to 2019 are based on previous series of ISAs. Charges and guarantees are based on those applying to the Ethical ISA.

These are the bonus rates that have been applied:

2019 – 2.50%
2018 – 2.25%
2017 – 3.00%
2016 – 2.75%
2015 – 2.75%

Interim bonuses
Unlike declared reversionary bonus rates, which can never be changed, interim bonus rates can be increased or reduced by the Board at any point during the year. The current interim bonus rates are based on a prudent view of future investment performance, solvency and expenses over the year. Interim bonus is paid on all withdrawals made since the last reversionary bonus declaration and on death.

Terminal bonuses
A terminal bonus is an additional final bonus which may also be added on partial and full withdrawals or in the event of the death of the investor. The rate of final bonus can be changed at any time or can be withdrawn altogether.

Life cover
If you die your capital is protected. The ISA will pay out at least what you have invested, less, of course, any withdrawals you have made. We know that protecting your initial investment in the event of your death is important, especially to our older members

The Healthy Investment stocks and shares ISA comes with important capital and bonus guarantees to ensure that your client receives back their initial investment plus all the bonuses that have been added to their ISA, less any withdrawals of course, providing they withdraw on one of the key anniversary dates.

The first guarantee anniversary date is on the 10th anniversary of opening the ISA and every 5th anniversary after that, when we guarantee that a MVR will not be applied to the withdrawal.

MVRs are never applied on death. This means that if your client was to die their estate is guaranteed to receive more than they have invested.

The level of bonus depends on investment performance, our expenses and our solvency margin over the previous year as well as the Board’s expectations of future performance.

The Key Information Document includes examples of what your client might receive back based on different investment scenarios. It also helps them understand the nature, risks, costs, potential gains and losses of this product and to help you and them compare it with other products.

Download our latest Key Information Document for our ISA here.

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