With Profits ISA

Teachers - invest tax-free with our stocks and shares ISA

Why invest in a With Profits ISA?

With inflation high and interest rates low, these are tough times for savers. Investing in a With Profits ISA gives teachers and education professionals the potential for investment growth - plus the chance of a bonus each year – to help you do more with your money. 
  • Invest in our With Profits Fund, managed by an award-winning investments team
  • Pay no tax on your investment gains
  • Worry less about market dips thanks to smoothed returns
  • Start your ISA with a lump sum, or as little as £50 per month
  • Wesleyan Financial Services works in partnership with NASUWT

Annual management charges apply. If you take advice from a Specialist Financial Adviser from Wesleyan Financial Services, an initial advice charge will also apply.

Keep in mind that investment values are not guaranteed, and can go down as well as up. You could get back less than you invest. 

Performance and returns

If you had you invested £10,000 in a With Profits ISA on 1st February 2012, your cash-in value on 1st February 2022 would have been £19,338*

Even if you had invested £10,000 on 1st February 2017, your cash-in value just five years later would have been £13,227 (see table below). 

Cash-in value at the end of...
Year 1
Year 2
Year 3
Year 4
Year 5
£11,287
£11,826
£12,653
£11,975
£13,227

Bear in mind these figures are based on the historical performance of the fund. Past performance is not a reliable guide to future performance.

* Source: Wesleyan internal information. Figures correct as at 1st February 2022. Figures shown are after the deduction of 1.2% annual management charges. They assume no ongoing advice charge, and include the effects of smoothing with regular bonuses, mutual bonuses and a final bonus added. Bonuses are not guaranteed.

Reasons beyond the returns: Why choose Wesleyan?

Mutuality means more

As a mutual that works closely with teachers, Wesleyan has no shareholders to pay. So, we can share our success with you through potential bonuses.

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Managing money since 1841

We've been looking after customers’ money for over 180 years. Today, our With Profits Fund holds more than £3bn of people’s investments.

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Regulated by the FCA

Invest with confidence, knowing that Wesleyan is regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Smoother, steadier returns

All investments are subject to the ups and downs of the stock market.  But our With Profits Fund aims to reduce sharp rises and falls through a process called ‘smoothing’.

This means holding back some returns when market performance is strong, to support returns when the market experiences losses. It reduces day-to-day fluctuations in your investment.

Before you apply for your ISA, please make sure you understand how smoothing, bonuses and Market Value Reductions (MVRs) work. We explain them in the How our With Profits Fund works booklet.

Managed by an award-winning team

When you save money into a With Profits ISA, you’re buying units in Wesleyan’s With Profits ISA Fund. The fund is managed by an investments team that's 'top of the class' – named Investment Team of the Year at the Insurance Asset Risk Awards 2020.

It means you don't need to be a skilled investor to open a With Profits ISA. We manage the fund on your behalf, so you can simply focus on saving.

Bonus potential

The With Profits ISA Fund includes Wesleyan's profits and losses from across the business. We share our financial success with you, by adding regular bonuses to your ISA when we can.

We can't promise to pay bonuses every year, but even in the challenging climate of 2020, we paid out a 1% bonus to our ISA holders at an average of £383 per person.

Sometimes, you might get a final bonus when you cash in your investment too.

A diversified fund

The With Profits Fund invests in UK and international shares, government and corporate debt, property, cash and other financial investments. Spreading money across multiple asset classes like this can help to spread risk. 

We class the With Profits ISA as a risk category 3 investment (on a scale of 1 to 5). This means a ‘moderate’ level of risk and reward.

If you aren't comfortable identifying the level of risk that's right for you, Specialist Financial Advisers from Wesleyan Financial Services are on hand to help.

Want to transfer in from an existing ISA?

To open your ISA with a transfer, you'll need to book an appointment with your Wesleyan Financial Services Consultant (initial advice charge applies).

Alternatively, you can open your ISA online, then contact us on 0121 200 9341 to complete a transfer once your account is open.

Got a question about the With Profits ISA?

Call us on 0121 200 9341 or request a call back. We're open Monday to Friday, 9am to 5pm. You can also take a look at our FAQs below.

Frequently asked questions

  • Is the With Profits ISA a stocks and shares ISA?
    Yes it is. We call ours a With Profits ISA as you're investing in our With Profits ISA Fund, but it works like most other stocks and shares ISAs. The money you save into your ISA is invested into the stock market by our investments team, to try and make your savings go further.
  • Am I eligible for a With Profits ISA?
    Our With Profits ISA is open to UK residents (for tax purposes) aged between 18 and 74. Before you can open your ISA, we'll just need you to complete a knowledge check to make sure you understand how the ISA works. To open an ISA with Wesleyan, you must also make sure you haven't contributed to another stocks and shares ISA in the same tax year.
  • How much can I invest in a With Profits ISA?

    Each tax year (6th April to 5th April), there’s a certain amount of money you’re allowed to put into an ISA.

    For tax year 2022/2023, that allowance is £20,000. Just be aware that tax rules for ISAs can and do change, so the allowance may vary from year to year.

    You can start your ISA with a lump sum of £1,000 or more. Or you can invest via monthly payments of £50 or more.

  • How do I manage my With Profits ISA?
    Once you've opened your ISA, you can top up and manage your account online, or if you prefer, by phone or post.
  • Can I withdraw money from a With Profits ISA?
    The With Profits ISA is best suited to people who are able to commit for at least five years, so ideally, you should only invest money you won't need to touch in the short term. That said, you can withdraw money at any time if you need to, as long as you withdraw at least £500 each time.
  • What does the With Profits Fund invest in?

    The fund invests in a wide range of assets including UK and international shares, government and corporate debt, property, cash and more. If you'd like to see a full asset breakdown and a list of the fund's top holdings, take a look at the With Profits Fund factsheet.

    Like all our directly managed funds, the With Profits Fund applies our principles of sustainable investing.

  • How do bonuses work?

    We regularly review the performance of our With Profits ISA Fund, and when results allow, we increase the value of your ISA by adding a bonus. We can’t guarantee a bonus every year, but when a bonus is paid, it’s added automatically to your ISA – you don’t need to do anything to claim it.

    Because of smoothing, where the With Profits Fund sometimes holds back your investment returns in periods of growth, you might also be due an additional bonus when you cash in your investment.

  • What is Wesleyan's association with teachers?

    Wesleyan has been providing a wide range of financial services to teachers and education professionals for many years.

    As well as products like the With Profits ISA, we offer tailored advice to teachers through a network of Specialist Financial Advisers from Wesleyan Financial Services. Experts in the education field, they specialise in things like the Teachers' Pension Scheme and exclusive teacher mortgages.

    Wesleyan Financial Services works in partnership with NASUWT. 

Important information

Things to know before you apply

If you open your ISA online you will not receive any investment advice or personal recommendation from us. Please therefore make sure you have read the important information and key documents below before applying, to make sure the investment is right for you. If you are unsure, please seek the advice of a Specialist Financial Adviser from Wesleyan Financial Services.

Annual Management Charges

When you open a With Profits ISA, you’re agreeing to pay an Annual Management Charge (AMC) of 1.2%. This charge is collected from your ISA to cover our costs in managing your account and investments.

Please note if you are already opted in to Wesleyan Financial Services’ Ongoing Advice Service (OAS), the Annual Management Charge is 1.7%.

Smoothing and Market Value Reductions (MVR)

To try and deliver steady returns, the With Profits Fund applies a mechanism called smoothing. This means we may hold back some of your returns when market performance is strong, in order to reduce the impact of periods of poor market returns.

If you choose to withdraw money from your ISA at certain times (usually when share prices have fallen substantially), we may also apply an adjustment which reduces how much you get back from that withdrawal. This is called a Market Value Reduction.

A Market Value Reduction is not a charge applied for Wesleyan's benefit. It’s designed to protect those still invested in the fund from a high volume of withdrawals being made by other customers at unfairly high valuations.

ISA and tax rules summary

The With Profits ISA is a stocks and shares ISA. You can hold multiple ISAs at the same time, but please note you can only contribute to one stocks and shares ISA in a tax year. In total, you can save up to £20,000 in ISAs in the 2022/2023 tax year.

To apply for a With Profits ISA, you must be a UK resident for tax purposes

You'll pay no personal income tax or capital gains tax on your investment returns from the With Profits ISA. This is based on current understanding of legislation and tax treatment, which can change in the future.

Key documents

Before you apply to open a With Profits ISA, please read the following documents:

NASUWT

The NASUWT a TUC affiliated organisation whose registered office is situated at Hillscourt Education Centre, Rose Hill, Rednal, Birmingham B45 8RS, Telephone: 0121 453 6150, www.nasuwt.org.uk. The NASUWT is an introducer appointed representative of Wesleyan Financial Services Limited.