Guarantee
1
We promise to restore your investment back to
its original value after five years from the end of the tax-year in
which you invest, if the value of your investments made in each
tax-year has decreased because of unfavourable market
conditions.
Guarantee
2
We promise to lock in any growth you have
achieved in each tax-year’s investment after five years from the
end of the tax-year in which you invested. So at the end of the
second five year period, the value of your investment is guaranteed
not to be less than the new increased guaranteed amount.
So how does the
Police Mutual double guarantee work?
The amount you invest each tax-year is treated separately and
will always benefit from its own double guarantee.
The first guarantee will be on the 6 April five years after the
end of the tax-year in which you make your original
investments.
To make sure you continue to make the most of your annual ISA
allowance, if you invest in your PMAS Guaranteed ISA in following
tax-years your investments will always benefit from the double
guarantee applied on the 6 April five years after each tax-year
investment.
So if you decide to cash in your investment on a 6 April
guarantee date, you will receive at least your original investment
including any locked-in growth.
An
example
The example below shows how the double
guarantee can help to protect each of your tax-year
investments.
A You
invest a total of £10,200 into the Guaranteed ISA up to 5 April
2010
B
Investment conditions prove to be favourable and the value of
your
investment, on 6 April 2015, has
risen to £12,300
C On
6 April 2015, we promise to lock-in that growth and increase
your
guaranteed amount to £12,300
D
Over the next five years, investment conditions prove to be less
favourable and
the value of your investment on 6 April
2020 has fallen to £10,800.
E On
6 April 2020 we promise to make up the shortfall and increase the
value of
your investment back up to £12,300,
the amount we locked-in on 6 April 2015
Figures are for
illustrative purposes only
The amount you get back will depend on
how long you invest for, the performance of the fund, our charges,
any withdrawals you make, the impact of tax and the outcome of our
other business activities. You can cash in your investment at any
time without charge. But to give your money the best opportunity to
benefit from potential growth, you should aim to leave it invested
for at least five years. It’s important you remember that if you
cash in your investment bewteen the five year guarantee points,
you could get back less than you have invested.
