Saga Stocks & Shares ISA

Why invest in a Saga Stocks & Shares ISA?

If you've still got some of your annual ISA allowance left in the current tax year then the Saga Stocks and Shares ISA (provided by Hubwise) might be right for you. 

It offers three ready-made investment portfolios, each with a different investment objective and level of risk, making it simple to choose the one that’s best aligned to your individual circumstances and goals. The portfolios give your money the opportunity to grow over the medium to long term (at least five years).

Better yet, all your investment returns are free of Capital Gains Tax and Income Tax, and you can request to take your money out at any time. It can take up to five working days for you to receive your money.

As with any investment, the value of your investments and any income received from them can fall as well as rise. This means you may not get back the amount you invested.

Start saving with a £100 lump sum, or £100 per month, up to the annual limit set by the UK government (currently £20,000 across all types of ISA). You can transfer the cash value of any existing ISAs you hold with other providers. Transfers from previous tax years won’t affect your allowance for this tax year. It is important to bear in mind that you can pay into more than one stocks and shares ISA or cash ISA in the same tax year, providing you don’t exceed your annual ISA limit. If you are transferring an ISA from another provider - you can transfer a partial amount, or the whole amount, but any money you have paid into it in the current tax year will still count towards your £20,000 annual allowance.

If you have maximised your ISA allowance for the current tax year then the Saga General Investment Account (provided by Hubwise) might be right for you. 

To see the Key Features Document for the Saga Stocks & Shares ISA.

What you can invest in with the Stocks & Shares ISA 

When you invest through the Saga Stocks & Shares ISA, you have a choice of three ready-made investment portfolios:

• Cautious Growth Portfolio – find out more
• Balanced Growth Portfolio – find out more
• Adventurous Growth Portfolio – find out more

Each portfolio comes with a different investment objective and level of risk. You just need to choose the one that’s best aligned to your individual circumstances and goals.

Designed by HUB Financial Solutions, the portfolios give you the opportunity to invest in a number of funds which hold a wide range of different types of assets like cash, bonds and company shares (or ‘equities’), across UK and international markets. This diverse range of assets helps spread the investment risk while giving your money the opportunity to grow over the medium to long term.

The funds in the Saga investment portfolios are managed by established fund management companies. These are shown in the portfolio fact sheets.

As with any investment, the value of your investments and any income received from them can fall as well as rise. This means you may not get back the amount you invested.

Find out more about the investment portfolios.

Introducing the Glide Path feature

If you’re investing for something specific, you may have a fairly good idea when you’ll need to access your money. If this is more than five years away, you may want your investment to automatically reduce in risk as you come closer to this point in time. This helps reduce the risk of your money going down in value just when you’re planning to use it. 

That’s why we offer the Glide Path feature.

You can choose this option when you first invest, or you can switch it on at any point in the future. Your money will then automatically switch down into a lower risk-rated portfolio which aims for lower volatility and the likelihood of smaller ups and downs. 

And if your needs change at any point in the future, there’s the option to switch off the Glide Path feature whenever you like.

Find out more about the Glide Path feature.

Different ways of investing in the Saga Stocks & Shares ISA

There are a few ways you can invest: 

1. Lump sum - If you have spare money in a savings account and want the potential for it to grow tax-free over the medium to long term, you can invest a lump sum from a minimum of £100 all the way up to the annual ISA allowance (currently £20,000) in any tax year.
2. Monthly - Invest money each month, starting from as little as £100 each month up to a total of £20,000 in any tax year.
3. Ad hoc – Invest lump sums of £100 upwards from time to time (as long as you don’t go over the annual ISA allowance).
4. Transfer ISAs - If you've got other ISAs, you can transfer the cash value across to your Saga Stocks & Shares ISA. This makes it easier to monitor all your investments, and you may even save on fees when everything is in one place. Transfers of ISAs set up in previous tax years won’t count towards your ISA allowance for the current tax year. Read more about combining investments.

The Saga Stocks & Shares ISA is a ‘flexible ISA’. This means that if you decide to withdraw some of the money you’ve invested in a particular tax year, you will be able to replace the amount(s) you’ve withdrawn in the same tax year.

For example, if you pay £20,000 into the Saga Stocks & Shares ISA and then withdraw £10,000 in the same tax year, you’ll be able to invest a further £10,000 before the end of that tax year.

Invest in the Saga Stocks & Shares ISA now.

Things to bear in mind

Before investing, you should be aware that:

• Saga Investments is a non-advised service. This means you won’t receive advice on investment decisions or whether the products are suitable for you. If you need additional support to identify which products and investment portfolios will meet your needs, this will not be the right service for you.
• You’re making your own investment decisions. When choosing your investment portfolio, you’ll need to decide how much risk you’re prepared to take in order to reach your investment goals. It’s important to find the right balance between potential risk and potential reward, so think carefully about the impact losing money will have on you. You can read more about the risks. Read more about the risks of investing.
• This is a medium to long term investment – preferably more than five years. There can be ups and downs in any market. But the longer you’re invested, the more chance your money has to overcome falls and for it to grow again.
• It’s often a good idea to clear outstanding unsecured short term or high-interest debts, and to make sure you’ve got enough money to cover day-to-day living costs.
• It’s also worth making sure you’ve got cash available in case of emergencies rather than being forced to use your investments. You can’t always withdraw stocks and shares ISA money quickly as it takes time to sell investments (up to five working days). Or the time might not be right to sell your investments, for example if there’s a downturn in the market and your money has gone down in value.

Fees and charges

There’s no up-front fee for opening a Saga Stocks & Shares ISA, and no exit fee if you take your money out.

The total annual cost is up to 0.75% per year of the overall value held within the Saga Stocks & Shares ISA (excluding transaction costs). So, if your ISA had a value of £10,000, the total cost for the whole year would be up to £75. This 0.75% is made up of fees (which are deducted from the product) and fund charges (which are reflected in the value of your funds).

The fees are 0.65% per year based on the value of your ISA. So, if your ISA had a value of £10,000, the fees for the whole year would be £65. This 0.65% is made up of:

• An Investment Service Fee of 0.52% per year
• A Platform Fee of 0.13% per year 

The total fund charges will be up to 0.10% per year. So, if your Saga Stocks & Shares ISA had a value of £10,000, the total fund charges for the whole year would be up to £10. The exact amount will depend on the portfolio you select and the funds your money is invested in.   

There will also be transaction costs for buying and selling the underlying assets in the fund, such as equities and bonds. The level of these costs depends upon the dealing activity in the fund.

The fees and charges are collected automatically - you don't need to do anything.

You’ll receive a full up-front breakdown of the fees and charges you’ll pay in the ‘Illustration of Costs and Charges’ document when you open a Saga Stocks & Shares ISA.

For further information about the fees and charges, including how they’re calculated and collected, please see the Frequently Asked Questions and the Saga Investments Terms & Conditions. 

How do I invest in a Saga Stocks & Shares ISA?

You can invest in a Saga Stocks & Shares ISA online with ease:

1. Set up your online account. You just need your email address, phone number and date of birth.

2. Read the important information carefully to make sure the Saga Stocks & Shares ISA is right for you and you understand the risks.

3. Once you've confirmed your decision to open a Saga Stocks & Shares ISA, choose your preferred investment option.

4. Finally, let us know whether you're investing a lump sum, setting up regular payments, transferring an existing ISA or combining different ISAs.

Once a few checks have been made to make sure everything's in order, your Saga Stocks & Shares ISA will be set up for you.

Invest in the Saga Stocks & Shares ISA now.

Managing your investments

Your online account offers you easy access to your investments at any time. You have the flexibility to:

• Pay in more money – as a one-off or regular contribution
• Transfer the cash value of another ISA to the Saga Stocks & Shares ISA
• Check the value of your Saga Stocks & Shares ISA
• Run illustrations
• Turn the Glide Path feature on and off
• Request a transfer
• View your important documents
• Make a one-off withdrawal or set up regular withdrawals
• Change your account details.

Eligibility

To open a Saga Stocks & Shares ISA:

• You must be over the age of 18.
• You must be resident and ordinarily resident in the UK for tax purposes. This includes Crown servants, or the spouses or civil partners of Crown servants working overseas. We are not able to provide Saga Investments to US persons.

Additional information

The investment growth on your Saga Stocks & Shares ISA will be free of Capital Gains Tax and Income Tax in line with the Government’s rules. ISAs are not free from Inheritance Tax (IHT) unless they are left to your surviving spouse or civil partner. The tax implications of ISAs and the relevant Government rules are subject to change.

You can cancel your account within 14 calendar days of the date on which your account was opened by calling or emailing the Saga Investments Team. If you cancel, the value of your Saga Stocks & Shares ISA will be repaid to your bank account within five working days. 

If the value has fallen between the time you invested and the time when the funds are sold following your cancellation instruction, you won’t get the full amount of your investment back. Fees will continue to be due until your Saga Stocks & Shares ISA is cancelled.

If you cancel within the 14 days, your account will be closed and any money you had paid in won’t count towards your annual ISA allowance. You can find more information about the Saga Stocks & Shares ISA in the Key Features Document.

If the amount you invest in a Saga Stocks & Shares ISA takes you above the ISA allowance for that tax year, the excess amount will automatically be placed in a Saga General Investment Account. You will be contacted by phone for instructions on how you’d like your money to be invested.

What happens if you die

If you die, your ISA will continue until:

• It’s closed by your executors or personal representatives
• Your estate administration finishes, or
• The third anniversary of the date of your death.

Your executors or personal representatives will be contacted about the options available:  

• If the ISA continues while the estate is being administered, no further contributions will be allowed into the ISA. But the money will still have the opportunity to grow – and remain free of Income Tax and Capital Gains Tax – until the end date. Please note that the value of the investment can also go down.
• Your ISA can be transferred into your spouse’s or civil partner’s name. This doesn’t impact their ISA allowance and your ISA will not form part of your estate for Inheritance Tax (IHT) purposes.
• However, your executors or personal representatives can’t request the transfer of the ISA to an alternative ISA manager. If your ISA is left to someone other than your spouse or civil partner, it will form part of your estate and may therefore be subject to Inheritance Tax (IHT).

If your ISA isn’t closed, or your estate isn’t finalised within three years and one day from your date of death, your ISA will lose its tax-efficient status and effectively become a GIA.  All income received or investment gains made after that point will become taxable.

If your spouse or civil partner dies, you can transfer their ISA(s) over to a Saga Stocks & Shares ISA in your name within three years of the date of their death. 

Protecting your money

HUB Financial Solutions, Hubwise and the providers of the funds you hold within your Saga Stocks & Shares ISA are covered by the Financial Services Compensation Scheme (FSCS). This protects customers against financial services failing. 

In the unlikely event that any of these companies can’t meet their obligations, you may be entitled to compensation from the scheme up to a maximum limit of £85,000 per person, per firm.

The FSCS does not cover losses for poor investment performance - the nature of investments means their value can go down as well as up.

For more information about the FSCS, visit the FSCS website. 

The information provided on this website should not be taken as a recommendation, advice or forecast. Tax depends on your personal tax position. Tax rules are subject to change by the UK Government.

Hubwise Securities Limited (FRN 502619) is authorised and regulated by the Financial Conduct Authority, is an ISA Plan Manager (HMRC ISA Plan Manager Z1723) and a Member of the London Stock Exchange.