Investing for tomorrow? Explore your choices today - Investing - Bank of ...
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Investing Investing for tomorrow? Explore your choices today.
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 3The 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 5Accounts 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 7Tools 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 9Before 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 11If 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.
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