In this brief guide, we will cover the Vitality ISA, its core features and what you can expect from it.
What is an ISA?
An ISA (Individual savings accounts) is a tax-free wrapper which allows you to save your annual ISA contribution limit in any ISA product,
What is the vitality ISA?
A Vitality ISA offers two ISA products:
Note: the vitality ISA is currently running an offer where they will provide a 100% cashback on your vitality ISA product charges. The offer expires on 20th December 2019. CAPITAL AT RISK.
The vitality stock and shares ISA
The vitality Junior ISA
The vitality stock and shares ISA is an ISA product which allows you to keep all the earnings or returns from your vitality stock and shares ISA without having to pay any interest on them.
This is in contrast to a typical savings account where you would have to pay tax on any interest earned.
The vitality Stocks and Shares ISA will invest in funds, unit trusts, bonds and shares in companies. You can decide the exact make-up of your ISA and decide how much risk you want to take. You can also alter this as you see fit.
This means if you are open to more risk you could potentially earn higher returns on your vitality ISA.
Your vitality ISA will allow you to put in the maximum ISA allowance of £20.000 in but you should be conscious that your maximum ISA allowance can also be used on any other ISA accounts and if you go over this limit then your savings and any interest gained on it may be liable for tax.
You will also be able to withdraw your money from the vitality ISA account without paying any tax.
The Junior ISA by vitality ISA
A Junior ISA by vitality ISA is a tax-efficient way to invest for any child which you have who is under 18. You can pay a maximum of £4,368 into a vitality JUniior ISA account(JISA) this tax year and your child’s money could grow tax-free.
The money in a junior ISA can only be taken out when the child is 18 by the Child. The money belongs to the child.
You can have both a Stocks and Shares Junior ISA and a Cash ISA for your child, just as long as the contributions don’t exceed this year’s annual allowance of £4,368.
Features of the vitality ISA
The vitality stock and shares ISA allows you to pay in £50 a month or a lump sum of at least £1500 when you initially open the vitality ISA account and possibly later on.
There is no requirement for you to continue making regular monthly contributions. You can stop, start or increase your monthly contributions at no time and with no penalty.
You can take money out of your vitality ISA and put it back at any time without affecting your ISA allowance.
Transferring your money out of your vitality ISA is straightforward and can be arranged by the vitality ISA team with little hassle to you.
The vitality ISA has the investment booster and healthy living discount perks which could add further returns on your current earnings.The vitality ISA Investment Booster rewards loyalty by adding extra money to your ISA every 5 years when you invest in Vitality funds. By maintaining a healthy lifestyle and having healthy habits and you could save up to 100% on the product charge with the Healthy Living Discount.
You can transfer your ISA to the vitality ISA with relative ease.
When you open a vitality ISA you will be added to the Vitality core healthy living programme which offers a range of discounts from a variety of brands.
Charges with the vitality ISA
The vitality ISA has three clear charges. These are:
The product charge
The fund charge
The advisor charge
Product charge –
The product charge is the vitality ISA charge for vitality managing the product for you this is a tiered charge with starts from 0.5% per annum. As you can imagine, the more you invest the lower your charge will be. The Healthy Living Discount you may be eligible for could mean you pay no product charge at all.
Fund charge –
The vitality ISA charge for the ongoing management of the funds you choose.
This is the charge that vitality ISA passes on to the financial advisor who advises you on the vitality ISA products. This is an amount you will agree with the adviser.
You can view the vitality ISA charging schedule for further information.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.