How the Abundance ISA works

Our ISA gives you more than tax free returns from our projects; it also offers growth and income in one place.

The Abundance ISA has been designed to help your money achieve more. Our investments provide a level of risk and return that means you can diversify away from cash deposits without having to make the leap to more volatile stocks and shares. Our Debentures also offer regular returns of capital and income which give you flexibility in how you manage your ISA holdings.

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.

* 2% AER (Annual Equivalent Rate) return will be paid by Abundance on the cash balance of your Abundance ISA from 21 February 2017 until 31 May 2017. Returns will be calculated on your daily cash balance from 21 February until 31 May 2017, and will be paid into your Abundance ISA as a single payment within 3 working days of 31 May 2017.

Funds are held by the Client Money Service Provider in accordance with the Abundance Service Terms & Conditions and the ISA Terms & Conditions. Abundance may withdraw or change the 2% AER return offer at any time so that it is no longer available or it is limited to a maximum number of new subscribers. The opening of an ISA is subject to the Abundance ISA Terms & Conditions.

As with any investment product there are risks. Part or all of your original invested capital may be at risk and any return on your investment depends on the success of the project invested in. You should be prepared to hold Abundance investments for their full term (and many will have terms of more than 15 years). Abundance investments may not be readily realisable (and their value can rise or fall). They may be secured or unsecured, and where they are secured this does not ensure repayment. Estimated rates of return can be variable and estimates are no guarantee of actual return. Specific risks will apply in relation to each product. Consider all risks before investing and read the Offer Document for each investment.