You'll need to decide whether you want to invest in a tax efficient* Stocks & Shares ISA, or investment fund or both. This may depend on whether you have used all your ISA allowance for the current tax year.
Stocks & Shares ISA
Nationwide offers access to a range of investment funds from some of the UK leading fund managers for you to choose from. You can invest in just one, or spread your investment across a range of funds. If you want to invest more than the current ISA limit, you can hold Unit Trusts/Open Ended Investment Companies (OEICs) in an investment fund.
Key features
- Invest from just £20
- Choose from a range of funds, each with individual fund investment objectives
- Access to a choice of UK leading fund managers including Jupiter, Invesco Perpetual, and M&G
- All the investment funds have been risk rated by Legal & General to help you choose funds that you believe are suitable for you
- Ideally you are prepared to invest for 5 years or more
Still confused about Stock & Shares ISAs? Watch this video
Why we've chosen Legal & General
We've chosen Legal & General to provide life assurance, investments and pension products.
About Legal & General - The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies. As at 31 December 2011, they were responsible for investing £378 billion worldwide on behalf of investors, policyholders and shareholders. They also had over seven million customers in the UK for their life assurance, pensions, investments and general insurance plans.
Find out more about investment funds
Investment funds
If you have used all your Stocks & Shares ISA allowance, you can still invest in investment funds. These are the same funds that are available as a Stocks & Shares ISA, but you will not benefit from the tax efficiency you get with a Stocks & Shares ISA.
Nationwide offers access to a range of investment funds from some of the UK leading fund managers for you to choose from. You can invest in just one, or spread your investment across a range of funds.
Key features
- Invest from just £20
- Choose from a range of funds, each with individual fund investment objectives
- Access to a choice of UK leading fund managers including Jupiter, Invesco Perpetual, and M&G
- All the investment funds have been risk rated by Legal & General to help you choose funds that you believe are suitable for you
- Ideally you are prepared to invest for 5 years or more
Why we've chosen Legal & General
We've chosen Legal & General to provide life assurance, investments and pension products.
About Legal & General - The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies. As at 31 December 2011, they were responsible for investing £378 billion worldwide on behalf of investors, policyholders and shareholders. They also had over seven million customers in the UK for their life assurance, pensions, investments and general insurance plans.
Find out more about Stocks & Shares ISAs
Portfolio Bond
The Portfolio Bond is a way of investing a cash sum over the long term. It is a flexible investment; you can take regular withdrawals, switch your funds, or you can cash in just part of your investment. The Portfolio Bond is provided by Legal & General.
Key features
- Invest from a minimum of £5,000
- Flexibility to make regular withdrawals which can provide you with a fixed amount
- Take money from your investment in a tax efficient way
- You are prepared to invest for 5 years or more
To find out more about the benefits and risks, and to apply for the Portfolio Bond, please contact our Service Consultants to book an appointment with one of our Senior Financial Consultants.
Why we've chosen Legal & General
We've chosen Legal & General to provide life assurance, investments and pension products.
About Legal & General - The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies. As at 31 December 2011, they were responsible for investing £378 billion worldwide on behalf of investors, policyholders and shareholders. They also had over seven million customers in the UK for their life assurance, pensions, investments and general insurance plans.
Find out how to book an appointment with a Senior Financial consultant
What is an ISA?
Did you know...
The tax man gets an extra £500 million in tax as a result of people not making full use of their cash ISA allowance - that's £50 each.
Source: Nationwide research, 2012
An Individual Savings Account (ISA) is a tax-efficient way to save or invest. UK residents 16 and over can choose to save in a cash ISA or if they are 18 or over, a stocks and shares ISA or a combination of both. Parents or guardians could also open a Junior ISA for children under 18.
The interest on a cash ISA isn't taxed so all the interest you earn you keep. With a stocks and shares ISA, all gains are free from capital gains tax, you don't even need to declare your ISA investments to the tax man.
The beauty of ISAs is that they don’t end when the tax year does. You take it with you into the new tax year meaning each year you get the tax benefits on the cumulative amount. You can keep adding to your ISA and the sooner you do this in the new tax year the more you
maximise the tax benefits ISAs give you.
You can only invest with one cash ISA provider in each tax year and the same, or another stocks and shares provider.
Still confused about what an ISA is? Watch this video
What is the ISA limit?
Each tax year you have an ISA allowance, for tax year 2012/2013 (6 April 2012 until 5 April 2013) your allowance is £11,280. You can save up to £5,640 in a cash ISA with the remainder in a stocks and shares ISA, or, you can invest your full allowance in a stocks and shares ISA.
Still confused about your ISA limits? Watch this video
Ways you could use your allowance
Take a look at the table below to see some examples of how you could split your full ISA 2012/2013 allowance between a cash ISA and a stocks and shares ISA.
| |
Total 2012/2013 ISA allowance |
Cash ISA allowance used |
Stocks and shares ISA allowance remaining |
| Example 1 |
£11,280 |
£2,500 |
£8,780 |
| Example 2 |
£11,280 |
£4,000 |
£7,280 |
| Example 3 |
£11,280 |
£5,640 |
£5,640 |
| Example 4 |
£11,280 |
£0 |
£11,280 |
Find out more about our Stocks & Shares ISA
Compare our full ISA range
*Tax treatment is dependent on individual circumstances. The tax information provided is based on our current understanding of current law and HM Revenue &
Customs practice which can change.