ISAS: Outside bet for savers
Sunday 25 April 1999
An insurance ISA is set up as a bond run by life companies or friendly societies, but the name is something of a misnomer as there is no life insurance included in the deal, although if you die your estate will get back at least what you have paid into the scheme.
Richard Norman is direct savings product manager at Abbey National, one of the few firms to offer all three elements of an ISA. He says: "The insurance ISA element can be appropriate because it should be less volatile than equities." Abbey sees it as a halfway house between savings acc-ounts and equity investments.
These plans put your money into with-profits funds. They invest in shares, property and fixed-interest investments and your cash grows through an annual bonus reflecting a share of the profits (hence "with-profits" funds) each year.
The underlying funds receive the same tax breaks as the stocks and shares ISA but with a lower investment limit (pounds 1,000). Overall, you can expect your money to grow at just 0.5 per cent a year quicker than in a taxed fund.
Contacts: Abbey National, 0800 302030; AXA Sun Life Direct, 0800 608072; CIS, 0161-832 8686; Norwich Union, 0800 056 2450; Pearl, 01733 473332; Scottish Friendly, 0141-275 5000.
- 1 Al Pacino on suffering from depression: 'It can last and it's terrifying'
- 2 Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
- 3 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 4 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 5 Mexican woman becomes world’s 'oldest person' at 127
Perez Hilton apologises for publishing Jennifer Lawrence naked photo leak
Jennifer Lawrence 'nude photo hacker' claims there are hundreds more celebrity images to come
Victoria Justice on naked photo leak: 'Let me nip this in the bud right now – pun intended'
Saudis risk new Muslim division with proposal to move Mohamed’s tomb
Ariana Grande nude photos leak: Pictures are completely fake, say singer's representatives
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
iJobs Money & Business
£600 - £800 per day: Harrington Starr: Derivatives Risk Commodities Business A...
£600 - £800 per day: Harrington Starr: Power & Gas Business Analyst/Subject Ma...
£600 - £900 per day: Harrington Starr: Infrastructure Lead, (Trading infrastru...
£35000 - £38000 per annum + benefits: Ashdown Group: A highly successful, glob...