Virgin FTSE tracker ISA: Our customers have over £2.6 billion invested in our tracker fund

Virgin FTSE tracker ISA: Our customers have over £2.6 billion invested in our tracker fund

Questions and Answers

ISAs explained

What is an ISA?

'ISA' stands for Individual Savings Account. They are the Government's way of encouraging you to save by giving you a tax incentive.

Unlike bank or building society deposit accounts, unit trusts or similar investments, you do not have to pay any additional income or capital gains tax on the money you make.

You can use your ISA allowance to invest in a Stocks and Shares ISA, or in a Cash ISA savings account where your interest is tax-free. Or you can do both. You do not even have to tell the taxman about your ISAs on your annual tax return.

From 1 July 2014 the overall ISA subscription limit increased to a combined limit of £15,000, across Cash and Stocks & Shares.

Remember, tax depends on your individual circumstances and may change in the future.

Please remember that to qualify for the bonus Flying Club miles, you need to invest in a new FTSE Tracker ISA.

What’s the difference between cash ISAs and stocks and shares ISAs?

A cash ISA is just like a basic savings account where you get a return based on an interest rate. With a cash ISA no tax is taken from the interest you earn, meaning you can earn more from your savings. A stocks and shares ISA is a tax efficient investment where money buys bonds or shares in companies on the stock market. The aim of the investment is to grow your money using the potential growth opportunities, but there are no guarantees because the value can go down as well as up and the past performance of the investment is not a reliable guide to future. Choosing the right ISA for you depends very much on your approach to risk. If you want a low risk account, Cash ISAs could be for you. But if you want the chance to earn a higher return, you might want to look at one of our Stocks and Shares ISAs.

Can you help me decide what is right for me?

We cannot give you financial advice, but if you have any questions about Virgin ISAs, please call us on 08456 10 20 20. Our lines are open 8am - 9pm Monday to Friday and 9am - 6pm on Saturdays. If you need advice we can put you in touch with an independent financial advice helpline.

Are there Key Investor Information documents for the Virgin ISAs?

Yes. You can view the latest versions here:

Key Investor Information

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Alternatively, you can call 08456 10 20 20 or email info@virginmoney.com to have a copy of the Key Investor Information documents sent to you.

How ISAs work

How much can I invest?

From 1 July 2014 the overall ISA subscription limit increased to a combined limit of £15,000, across Cash and Stocks & Shares.

You can also transfer Cash ISA investments from this or previous tax years into a Stocks & Shares ISA without affecting your current tax year limit.

Annual ISA limits are increased in line with inflation each year.

Remember, tax depends on your individual circumstances and may change in the future

Please remember that to qualify for the bonus Flying Club miles, you need to invest in a new FTSE Tracker ISA.

How do I invest in more than one of your ISAs?

This offer relates to the FTSE Tracker ISA only. You can split your investment between our different ISAs once your FTSE Tracker ISA is up and running.

What are your charges?

Both the FTSA Tracker ISA and the Bond and Gilt ISA have an ongoing charge of 1% of the value of your fund.

How do I check how my Stocks and Shares ISA savings are doing?

We will send you a full statement twice a year to let you know how your savings are doing. You can also call us, or you can check the latest valuation of your ISA savings online anytime.

Will my investments be covered by the Financial Services Compensation Scheme (FSCS)?

Your investments will be covered by the FSCS for up to £50,000 per person. Information about the scheme can be found in the product terms and conditions and on the FSCS website www.fscs.org.uk.

This is in addition to the £85,000 afforded to Savings customers.

Is it easy to take my money out?

Yes. You can withdraw your money over the phone or on the Internet whenever you need it. Your cheque should normally arrive within a few working days.

Am I tied to rigid payments?

No – you can stop, start, or change your payments at any time. You can withdraw your money whenever you need to without any penalties. You can also switch some or all of your investment between our different funds any time you like, free of charge.

Can I transfer another ISA to Virgin?

Yes, whether it's an ISA from a previous tax year or one you're paying into this tax year, you can transfer it to Virgin.

If you're interested in transferring an ISA to us, click here or call us on 08456 10 20 20.

Virgin FTSE Tracker ISA

How has the FTSE All-Share Tracker Fund performed since launch?

As you can see from the graph below, the performance of the All-Share Index has fluctuated over time, affecting the value of any investment. You therefore need to be prepared to experience these ups and downs in the future, and to think about the timing of when you choose to invest or withdraw your money.

To help illustrate the long term potential of the fund, the graph also shows you that an investment of £3,000, made in March 1995, would have increased in value to £11,238 on 30/06/14.

Graph illustrating how £3000 invested in March 1995 would have increased in value to £10,812 on 31 March 2014

Source: Morningstar Direct, 04.03.95 - 30.06.14, calculation based on bid to bid unit prices, net of basic rate tax with income reinvested.

Remember, past performance is not a reliable guide to the future. The value of your investment can go down as well as up, and you may get back less than you invest. This is a medium to long term investment so you should be prepared to invest your money for at least 5 years.

How has the fund performed over each of the last five years?

If you had invested £3000 on 30 June 2009 in the FTSE All-Share Tracker, it would be worth £5,584 after charges on 30 June 2014. Here is a table showing the returns you would have got from our tracker fund in each of the last five years.



Virgin UK Index Tracking Trust performance over the last 5 years
30/06/2009 to 30/06/201030/06/2010 to 30/06/201130/06/2011 to 30/06/201230/06/2012 to 30/06/201330/06/2013 to 30/06/2014
19.6%24.3%-4.0%16.7%12.0%

Source: Morningstar Direct, 30.06.09 to 30.06.14, calculation based on figures in £’s, on a bid to bid basis, net of basic rate tax with income reinvested.

Remember, past performance is not a reliable guide to the future. The value of your investment can go down as well as up, and you may get back less than you invest.

This is a medium to long term investment so you should be prepared to invest your money for at least 5 years.

Are all index tracking ISAs the same?

No, some have a bias toward certain sectors of the market. They may only invest in the top 100 companies, or in technology stocks or small companies. These investments can pay off, but if an individual sector performs badly it can have a more serious impact on your returns than if you'd invested across the market as a whole.

How long do I need to invest for?

Stocks and shares should be seen as a long term investment. There’s no correct length of time to invest as the stock market can be subject to short term ups and downs at any time, but you should be prepared to invest for at least 5 years.

You can, however, get at your money any time you need to.

What about the risks of investing in shares?

Investing in stock market shares is not without its risks. They can rise spectacularly in value over many years, go into periods of decline, or fall suddenly in value, with no guarantee you'll get back the full amount you invest. The key thing to remember is, the longer you stay invested in the stock market the better you tend to do.

If you only invest in a handful of shares over the short term you'll certainly increase your risk. But by investing over many years and spreading your savings over a wide range of shares, you lessen that risk and actually increase your chances of getting a good return.

The risks of not investing in the stock market are rarely spelled out, but are real. For instance, due to inflation the real value of your bank or building society savings may actually fall over time. If your deposit account only earns 2% in interest but the cost of living goes up 2.5%, your savings aren't growing in real terms, they're shrinking. Please do remember though, investing in a stocks and shares ISA is different to a deposit account, where your money is not at risk.

If the stock market falls do I lose my money?

History shows that long-term investors shouldn't be too worried when the stock market falls. The people who lose out are those who panic and cash in their investment, instead of waiting for the market to rise again. For example, in 1987 the market actually finished higher than it started, despite falling 32% in the October 87 'crash'.

However, if the market goes into a longer fall (known as a 'bear market') it can sometimes be a few years before you start to see a decent return on your money. As ever, time is the key, and you should only consider investing money you can afford to tuck away for at least five years.

Do tracker funds with the lowest charges give the best returns?

Not necessarily. How closely a fund tracks its chosen stock market index (known as 'tracking error') can also have an impact on your returns. Some trackers don't invest in all the shares on an index. Instead they select a 'sample' of shares to invest in, which is really active management by the back door, and will affect your returns. A 'fully replicated' tracker like ours which buys shares in every company on the index will track the index closer.

Also, always check charges carefully. Some companies advertise what appears to be the lowest charging tracker, but there are often other charges that can bump up the cost, and some have high minimum investment levels.

Be 5,000 miles
better off
Get 5,000 Flying Club miles when you invest in a new FTSE Tracker ISA.

Please read full offer terms and conditions.
Apply online