Investing for tomorrow? Explore your choices today - Investing - Bank of ...

Page created by Troy Townsend
 
CONTINUE READING
Investing for tomorrow? Explore your choices today - Investing - Bank of ...
Investing

Investing
for tomorrow?
Explore your
choices today.
Investing for tomorrow? Explore your choices today - Investing - Bank of ...
Before you choose
    an investment
    Investing in stocks and shares can be a risky business, so you’ll want to
    know all the facts before you commit to anything.
    We provide an execution-only service,         3. What price do you put on risk?
    which means we simply do what you
                                                  There are no two ways about it,
    tell us, rather than giving you advice
                                                  with share dealing, you might not
    on how to invest.
                                                  get back what you put in. Past
    One thing worth mentioning upfront            performance is not a reliable indicator
    about the stock market is that nothing        of future performance. The levels of
    is for definite, but over a longer term       taxation might change, and any tax
    the stock market could offer better           advantages really depend on your
    returns than savings accounts.                own situation. Some investments
                                                  are riskier than others too, so think
    1. Is it right for you?
                                                  carefully about how much risk you’re
    You really should be thinking long            happy with before you invest.
    term, say five years or more. If you
                                                  You should also see investments like
    don’t want to put your money away
                                                  this as an extra to savings, not an
    for that long, a savings account could
                                                  alternative, and only trade with money
    be better for you.
                                                  you can afford to lose.
    2. How much can you invest?
                                                  When investing, think about creating a
    Think about how much money you                balanced portfolio of different savings
    can put away. And make sure you               and investments. By spreading your
    read all of the terms and conditions in       investments, it may help to reduce
    full before you commit. Some of our           your risk.
    products come with charges, so make
                                                  We don’t provide advice so if you
    sure you understand exactly what
                                                  are unsure about making your own
    you’re paying for.
                                                  investment decisions, please seek
                                                  advice from a suitably qualified
                                                  Financial Adviser.

                 or free impartial help and advice on debt and financial
                F
                services, visit www.moneyadviceservice.org.uk

2                                             3
The difference between                                                               Types of investment
saving and investing                                                                 As an execution-only service, we don’t provide advice but we’ll give
                                                                                     you all the information you need to decide whether investing is right
                                                                                     for you, plus some useful tools, to help you make your own decisions.

Savings                                                                              Ready-made investments
Nobody knows what’s around the corner. That’s why if you can afford to               We have designed our ready-made investments to help you                 Investment
save, it’s a good idea to set aside money for your future. With an easy              diversify your money across a range of markets, without the                 ISA
access savings account, you have access to your money and can generally              complexity of picking your own stocks and shares.
make withdrawals when you need to. In return you earn interest. This is a            If you haven’t invested before, or you prefer to leave it to the
low risk way to save your spare money.                                               experts, our ready-made investments could be the right choice
Funds held in a savings account are generally more secure and accessible             for you.                                                                Investment
and provide more predictable growth.                                                   	Choice – you can choose between three funds with a level
                                                                                                                                                               Account
                                                                                            of risk you’re comfortable with – high, medium or low
Investing                                                                                   risk. Plus, you can hold them in an Investment ISA or an
Investing is also a process of setting aside money, but this involves more                  Investment Account.
risk. You could be investing in shares, property, securities and other asset           	Diversified – our investments are ready-made so they give
types, whose prices rise and fall as the market changes. Although there’s a                 you exposure to a diverse mix of shares, bonds, property
higher risk with investing, there’s also the chance for a higher return than                and more.
through savings.                                                                       	Flexible – invest regularly from £100 per month, or with
The value of investments and income from them can go down as well as up                     a minimum lump sum of £2,000.
and cannot be guaranteed. Consequently investors may not get back the
amount they originally invested.                                                     Choosing your own investments                                              Stocks
                                                                                     If you want to pick your own stocks and shares, we can help too.         and Shares
Medium to long-term goals                                                              	Control – you can create and build your own portfolio to            ISA
For medium to longer-term goals, it could be worth thinking about investments                meet your personal investment goals.
as inflation can reduce the real value of savings. Also, the longer you can leave            Variety – choose from a wide range of investments,
your money invested, the better the chance you have of getting higher returns.                    including our Select List of funds, shares in individual
                                                                                                                                                                Share
Investments in the stock market will go up and down. If you need access to your                   companies and exchange traded funds (ETFs) where you
                                                                                                                                                               Dealing
money in the short-term there is no guarantee you’ll get back all the money                       can track the market.
                                                                                                                                                               Account
you’ve invested.                                                                     Pensions are a long-term investment. The retirement benefits
You should remember that taking any money out of your investment will reduce         you receive from your pension account will depend on a
                                                                                                                                                             Self-Invested
its value and the amount you take out could be greater than any growth achieved.     number of factors including the value of your account when
                                                                                                                                                               Personal
                                                                                     you decide to take your benefits which isn’t guaranteed, and
If your long-term goal is retirement, a pension could be an option for you as it’s                                                                             Pension
                                                                                     can go down as well as up. The value of your account could fall
tax-efficient and you normally get tax relief on contributions you make to it.       below the amount(s) paid in.

                                         4                                                                                     5
Accounts explained
 Account name                     Features and benefits                                      Dealing Commission and Account Charges

Stocks and Shares ISA              	
                                    The ISA allowance for this tax year can be found         Customer administration fee: £36 per year (you can have a Share Dealing
                                    on the UK Government’s website www.gov.uk/               Account and ISA for this single fee).
Ideal if you’d like to
                                    individual-savings-accounts
protect any potential profit                                                                 Real-time online trades: £9.50 dealing commission per trade.
                                   	
                                    Pay no capital gains or UK Income Tax.
from Capital Gains or
                                   	
                                    We have lots of investment options including             Regular investment service: £2.00 dealing commission per trade.
UK Income Tax.
                                    shares, funds and exchange traded funds (ETFs).
                                    No initial charges on any funds.
                                   	
                                    You have complete control and manage your
                                    own investments.

Share Dealing Account              	
                                    We have lots of investment options including             Customer administration fee: £36 per year (you can have a Share Dealing
                                    shares, funds and exchange traded funds (ETFs).          Account and ISA for this single fee).
Ideal if you’d like a
                                    No initial charges on any funds.
straightforward account to                                                                   Real-time online trades: £9.50 dealing commission per trade.
                                   	
                                    You have complete control and manage your
start trading with.
                                    own investments.                                         Regular investment service: £2.00 dealing commission per trade.

Self-Invested Personal              
                                    Pay  no Capital Gains Tax or UK Income Tax on            Quarterly account charge: £22.50 for a SIPP with a value of £50,000 or less.
Pension (SIPP)                      your pension investments.                                £45 if the value is more than £50,000.
                                   	
                                    Receive tax relief at your marginal rate on
Ideal if you’d like a flexible,                                                              Real-time online trades: £9.50 dealing commission per trade.
                                    your contributions.
tax-efficient retirement
                                    No initial charges on any funds.                         Regular investment service: £2.00 dealing commission per trade.
account that puts you
                                    You have complete control and manage your
in control.                                                                                  Our SIPP is provided by pension provider AJ Bell.
                                     own investments.
                                   	You can contribute up to £40,000 per year
                                     subject to your earnings.

Ready-made investments             	
                                    Select between low, medium or high risk funds.          Charges are paid every year, and are based on the total value and fund type of the
                                   	Choose an Investment ISA or Investment Account.        investment. There are three types of charges applicable to this product.
Ideal if you’re short on time
                                   	 Instant investment diversification through shares,   Service Fee of 0.24% and Transaction Costs and Ongoing Charges that vary
and don’t want to pick your
                                      bonds, property and more.                              depending on the Fund you invest in.
own stocks and shares.
                                   	 We manage the investment for you.                     Please see our website for more information and details on charges
                                                                                             bankofscotland.co.uk/investing/ways-to-invest/ready-made-investments

                                                                                                           For detailed charges on our Share Dealing accounts –
Please note that tax treatment depends on individual circumstances
                                                                                                           bankofscotland.co.uk/investing/ways-to-invest/
and tax laws may change.
                                                                                                           choose-your-own-investments
                                           6                                                                                             7
Tools to help
you invest
Learning about the market is important if you want to invest.
Whether you’re just starting out or looking to learn a bit more,
we have some tools that could help you out.

Investing for beginners                     Video Library                         Research centre
This information will help you to...        Discover market insight, investment   Use our research centre to read the
                                            ideas, and some of the trends which   latest news and insight, search and
   nderstand the basics of
  U
                                            are shaping the world today.          filter different investments, and track
  investing, including the risks so
                                                                                  how an investment is performing.
  you can be confident with your
  investment decisions.                     Investment ideas
 	
  Know if investing could be right             ooking for new investments or
                                              L
                                                                                  TradePlans
  for your circumstances.                     trying to keep up with market       TradePlans can either help you make
  
  Learn  how to get started with              news?                               the most of share price movements,
  investing and how to make the             	
                                             Stay on top of the latest market     or protect you from a sharp fall. They
  most of your investments.                  news to help manage your             are automated trading tools which
                                             portfolio effectively.               carry out your request to buy or sell
                                                                                  investments at a price which you set.
Boost your skills                           	
                                             Thousands of expert articles         Available on UK equities only.
                                             updated daily to help you find
From a beginner’s guide to
                                             new investment opportunities.
stocks and shares to guidance on
managing your portfolio, our easy to
read articles and videos are there to
help you.

Visit our investing hub at bankofscotland/investing/understanding-
investing.html where we offer a variety of research tools and articles to
help you take the next step on your investing journey.

                                        8                                                                                   9
Before you apply                                                          Setting up your investment

1                       2                        3                              To register online
                                                                                 	
                                                                                  Start your online registration at
                                                                                  bankofscotland.co.uk/investing
Keep some               Sort out                 Make sure
money for a             any debt                 you’re                           We can normally verify your identity electronically.
rainy day                                        covered                          If you have any trouble registering online you
                                                                                   can call us on 0345 606 1188. Lines are open
It’s always a good                                                                 Monday to Friday 8am–9pm.
                        Get your debts           You might want
idea to have some       under control before     to think about life
money on hand if the    thinking about           insurance, critical
unexpected crops        investments. The         illness cover or
up – say three to six
months’ worth of
                        interest you’ll be
                        paying on short-term
                                                 income protection              To set up a Bank of Scotland Share
                                                 before you think
income in a savings     loans and credit or      about investing.               Dealing SIPP
account. Think about    store cards could be     Especially if you
what you might need                                                             Call us on 0345 606 1188.
                        much more than the       have a family or
if an emergency         returns you’d get from   people who rely on             Or download an application form at
strikes.                an investment.           the money you earn.              bankofscotland.co.uk/investing/ways-to-invest/
                                                 If your employer                 choose-your-own-investments/self-invested-
                                                 offers these kinds of            personal-pension.html
                                                 benefits, you should
                                                 check to make sure
                                                 you’ve got the correct
                                                 cover in place.

                                  10                                                               11
If you’d like this in                                Additional information
    another format such                                  Bank of Scotland Share Dealing Service is operated
                                                         by Halifax Share Dealing Limited. Registered in
    as large print, Braille                              England and Wales no. 3195646. Registered Office:

    or audio CD please                                   Trinity Road, Halifax, West Yorkshire, HX1 2RG.
                                                         Authorised and regulated by the Financial Conduct
    contact us.                                          Authority under registration number 183332.
                                                         A Member of the London Stock Exchange and an
                                                         HM Revenue & Customs Approved ISA Manager.
    If you have a hearing or speech impairment           The Bank of Scotland Online Investments service
                                                         is operated by Halifax Share Dealing Limited.
    you can contact us using Relay UK or
                                                         Registered in England and Wales no. 3195646.
    Textphone on 0345 604 2543 (lines are
                                                         Registered Office: Trinity Road, Halifax, West
    open Monday to Friday, 8am to 6pm).                  Yorkshire, HX1 2RG. Authorised and regulated by
    If you’re deaf you can also use BSL and the          the Financial Conduct Authority under registration
    SignVideo service at bankofscotland.co.uk/           number 183332. A Member of the London Stock
    accessibility/signvideo                              Exchange and an HM Revenue & Customs Approved
                                                         ISA Manager.
                                                         AJ Bell Management Limited is the Scheme
    We’ll do all we can to resolve any problems you      Administrator of the Bank of Scotland Share Dealing
    have. If you want to complain:                       SIPP. AJ Bell Management Limited is registered
                                                         in England No. 3948391. Registered Office:
    Call: 0345 606 1188                                  4 Exchange Quay, Salford Quays, Manchester,
                                                         M5 3EE. Authorised and regulated by the Financial
    If you have a hearing or speech impairment, use      Conduct Authority and on the FCA register under
    textphone: 0345 604 2543                             FCA registration number 211468. Sippdeal Trustees
                                                         Limited is a wholly owned subsidiary of AJ Bell
    Log in to chat to us online at:                      Management Limited, registered in England No.
    bankofscotland.co.uk/sharedealing/contact-us         4050222. Registered Office: 4 Exchange Quay,
                                                         Salford Quays, Manchester, M5 3EE. Sippdeal
    Write to: Bank of Scotland Share Dealing,
                                                         Trustees Limited does not conduct any regulated
    Lovell Park Road, Leeds LS1 1NS                      activities, and is, therefore, not regulated.
    We’ll confirm who’ll be dealing with your            Bank of Scotland plc. Registered Office: The Mound,
    complaint. If we can’t resolve things immediately,   Edinburgh, EH1 1YZ. Registered in Scotland
    we’ll let you know what the next steps are.          No. SC327000.
                                                         Bank of Scotland plc is authorised by the Prudential
    Provided you’ve tried to resolve things with         Regulation Authority and regulated by the Financial
    us first, if you’re still unhappy, you can ask the   Conduct Authority and the Prudential Regulation
    Financial Ombudsman Service to help. We can          Authority under number 169628.
    provide information on how to do this if you         Calls and online sessions may be monitored and/
    need it.                                             or recorded for quality evaluation, training and to
                                                         ensure compliance with laws and regulations. Not all
                                                         Telephone Banking services are available 24 hours a
                                                         day, 7 days a week.
                                                         Eligible investments with us are protected by the
                                                         Financial Services Compensation Scheme. We are
                                                         covered by the Financial Ombudsman Service.
                                                         Information correct as of April 2021.

1/452416-2 (04/21)
You can also read