Put cash into your Abundance ISA
You can subscribe any amount from £5 right up to the maximum ISA allowance (£15,240 in 2016/17) into your Abundance ISA each tax year. You can also transfer ISA cash from your existing ISAs into your Abundance ISA. Once the money is in your ISA it doesn’t get taxed, even if you don’t invest it right away.
Get a 2% AER return on your ISA cash
Until 31 May 2017 we are offering a 2% AER (Annual Equivalent Rate) return on the cash balance of your Abundance ISA*. This means you can start earning a tax free return on your ISA cash before you invest it into projects.
We have a range of projects launching over the coming months for you invest in before the promotional period ends. But you are free to keep your cash in your Abundance ISA once it has been subscribed, which means you can build your portfolio of ISA investments with us over a timescale that suits you.
If you ultimately decide not to invest all your ISA cash with Abundance, you are free to transfer any portion of your uninvested funds away from the Abundance ISA to another ISA provider at any point. You can find out more about this process here.
Invest tax free
You can choose to invest in any number of projects through your ISA with a minimum of just £5 in each. This lets you easily diversify your holdings within your Abundance ISA across a range of sectors, investment terms and risk levels. You need to invest your ISA cash into projects if you intend to generate a long term income from your Abundance ISA, as the 2% AER return offer only runs until 31 May 2017.
Earn regular tax free cash returns
Most of our projects offer six-monthly cash returns, which we pay straight into your Abundance ISA account. They stay tax free whether you reinvest to grow your money further or withdraw to spend some. We provide a calculator for each of our projects so you can easily see the expected returns for each year of the investment.
Actively manage your ISA
Our ISA lets you choose how to manage your ISA based on your goals. Our customers use their cash returns in different ways depending on what they have decided this money is for. Some withdraw their regular cash returns as income, while others manage their portfolio more actively by reinvesting some of their cash returns into new projects and spending the rest.
Because most of our projects repay some of the original invested capital at the same time as investment return, you have a lot of choice about what your ISA money can do. We have explained a little more about each strategy below.
Reinvest your income to maximise your growth
Many customers choose to reinvest their capital repayments and investment income in order to grow their money more quickly. When they do this, they are growing their holdings with us without the need to deposit new money all the time, although many do ’top up’ when they reinvest. When the time comes to start spending their returns, they have built up a bigger income.
Grow your holdings and create a tax free cash income
The Abundance ISA also allows you to keep growing your income but still keep access to cash as you need it. This is because you are in control of how much of your returns you reinvest, so you can choose to reinvest any percentage of your cash returns while withdrawing some to spend immediately or save for a rainy day.
Following this strategy lets you balance growing your portfolio of investments with getting a cash income.