About ISAs and Unit Trusts

Not sure whether you should choose a Stocks & Shares ISA or a unit trust? Let us explain the difference, so you can make an informed decision.

ISAs explained

Find out more about tax-efficient investing. Could an ISA be right for you?

Unit trusts explained

Our unit trusts are suitable for all sorts of investors. Find out if we have one that’s perfect for you.

A customer's viewpoint

“ISAs are great for first time investors. Investing in an ISA means you keep more of what your investment earns – and you don’t have to hand it over to the taxman.”

Sarah K, Co-operative Investments customer

Top five common enquiries

• What is an ISA?

ISA stands for ‘Individual Savings Account’. An ISA allows you to save money without having to pay any tax on your returns. There are two types of ISA – cash ISA and stocks & shares ISA.

Cash ISAs are available from The Co-operative Bank and Britannia and our stocks & shares ISA is available from The Co-operative Investments.

• How much can I invest in a unit trust or stocks & shares ISA?

Our unit trusts have a minimum investment amount of £1000 if you invest a lump sum, or £50 per month for a regular monthly investment. You can invest using a combination of lump sum and regular payments.

There is no maximum limit for investment in our unit trusts, but for the current tax year you can ‘wrap’ a maximum of £10,680 as a stocks & shares ISA.

• How can I find out how my investment is performing?

You can take a look at the latest Fund Factsheets online, or your Co-operative Financial Adviser can provide you with this information.

We’ll also send you a statement twice a year, showing a cash-in value for your investment at the time. You can also get an up-to-date valuation of your stocks & shares ISA or unit trust whenever you need it, by calling us on 08457 46 46 46.

• Where will my money be invested?

It depends on which unit trust (or trusts) you choose. They’re all different and each Fund Manager frequently adjusts the investments in the fund, when they find the best opportunities.

• Can I take money out?

A unit trust is a medium to long-term investment, not a savings account, so you should intend to leave your money in for as long as possible, to give it the best chance to grow. But you can make withdrawals, or take a regular income from most unit trusts, though remember this will reduce the amount you get back when you cash in your investment.

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Take a look at some more common enquiries.