What is a My Smarter ISA?
With My Smarter (ISA), your money is invested in Scottish Friendly's With-Profits fund, which is linked to the stock market. So, while it's impossible to predict exactly what return you may get, we can try to give you an idea of how much you might get back on your investment in the future.
As with any investment, the value of your My Smarter (ISA) can go down as well as up, and you could get back less than you paid in.
How much money might I get back?
The figures below show what could happen in three different assumed investment scenarios – lower growth, where investments grow at 1.5% a year, medium growth, where investments grow at 4.5% a year, and higher growth, where investments grow at 7.5% a year.
Based on an investment of £30 per month escalating at 5% per year over 10 years. The total amount you would have invested is £4,529. The figures below are what your My Smarter ISA could be worth after charges for the three different scenarios:
Lower growth of 1.5% – you would get back £4,520*
Medium growth of 4.5% – you would get back £5,200
Higher growth of 7.5% – you would get back £5,990
*For the regular monthly payments the lower projected growth rate of 1.5% provides for a return which is less than the total investment you will make over a 10 year term. This is due to the effect of rounding
Based on a lump sum investment of £2,000 for 10 years. The figures below are what your My Smarter ISA could be worth after charges for the three different scenarios:
Lower growth of 1.5% – you would get back £2,000
Medium growth of 4.5% – you would get back £2,670
Higher growth of 7.5% – you would get back £3,550
Remember, this is just to give you an idea of what you might get back. What you get back depends on the rise and fall of the underlying assets and on the tax treatment of the investment which could change over time. You could get more or less than the example figures above and the total amount invested. Do not forget that inflation would reduce what you could buy in the future with the amounts shown.
Please note that a Market Value Reduction may apply when you cash in your policy. This is designed to ensure that the amount you receive is in line with the value had you invested directly in the assets backing your policy. The annual rates of growth assumed for the projection have been based on Scottish Friendly's reasonable estimate of potential returns. They are subject to the assumed maximum rates specified by the Financial Conduct Authority. All the figures include the deduction of the actual charges on the policy. These charges may vary in the future.
To help you keep track of how your My Smarter (ISA) is doing, Scottish Friendly send you a statement twice a year showing the current value of your investment.