Five reasons to get an ISA
A stocks and shares ISA could be a great way to grow your wealth over time – here’s why. Try our ISA calculator to see how your wealth could grow.
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When you become a client of Coutts, you will be part of an exclusive network1.
the growth potential
An ISA could help expand your wealth over time, depending on how the underlying investments perform. We’ve put together this ISA calculator so you can see how it could grow over different periods.
Over a five year period, you could accumulate £100,000, which could grow to between £106,162 and £126,719 before fees with investment returns, depending on how your funds perform.
Potential returns when using your ISA allowance for 5 years in a stocks and shares ISA
Over a 10 year period, you could accumulate £200,000, which could grow to between £223,374 and £312,910 before fees with investment returns, depending on how your funds perform.
Potential returns when using your ISA allowance for 10 years in a stocks and shares ISA
Over a 15 year period, you could accumulate £300,000, which could grow to between £352,786 and £586,486 before fees with investment returns, depending on how your funds perform.
Potential returns when using your ISA allowance for 15 years in a stocks and shares ISA
Over a 20 year period, you could accumulate £400,000, which could grow to between £495,666 and £988,458 before fees with investment returns, depending on how your funds perform.
Potential returns when using your ISA allowance for 20 years in a stocks and shares ISA
Over a 25 year period, you could accumulate £500,000, which could grow to between £653,418 and £1,579,088 before fees with investment returns, depending on how your funds perform.
Potential returns when using your ISA allowance for 25 years in a stocks and shares ISA
Over a 30 year period, you could accumulate £600,000, which could grow to between £827,589 and £2,446,917 before fees with investment returns, depending on how your funds perform.
Potential returns when using your ISA allowance for 30 years in a stocks and shares ISA
Source: Coutts & Co 2021
For illustrative purposes only. This is an example only and does not represent a typical or likely outcome.
Assumptions made are that the growth rates used are not representative of any investment instrument and that it does not change during the term of the investment shown. This is an unlikely outcome as the value of investments can go down as well as up and you may get back less than you invest. The terms used are to demonstrate the medium to long-term nature of investing. This example does not take into account commission, fees or charges which will reduce the returns shown above. It is assumed £20,000 is invested each year and no additional investments or withdrawals have been made during the term.
The tax treatment of the investment is that applying under current legislation and can change. The availability and value of any tax reliefs will depend on your individual circumstances.
2.
the tax breaks
You probably already know this one, but it’s worth repeating. ISAs bring tax advantages to your wealth. Put £20,000 into one by the end of the 2020/21 tax year on 5 April, and any gains are free from UK capital gains and income tax.
3.
It's easy to set up - and we do the investing for you
A Coutts ISA is very straightforward to put in place. You can do it yourself online through Coutts Invest in a matter of minutes.
Just decide how much you want to invest, which fund you want to invest in – we have five catering to different investment goals – and let us do the rest. Our experienced team of experts will look after your money day-to-day, aiming to help you benefit from global investment trends. You can add to your investment and check on its progress any time, 24/7. Fees and charges apply.
Wondering if you’re eligible? Coutts Invest is available to clients who are UK resident and domiciled for tax purposes, aged 18 or over, use Coutts Online and have at least five years to invest. If you’re over 74 or are UK resident but non-domiciled for tax purposes, speak to your private banker who can organise access for you.
4.
it's good for the environment
So, you’ve got a tax break and the potential to grow your wealth – and it didn’t take long to get it. But there’s more to a Coutts ISA – it could help you to play your part in a more sustainable future. We take sustainability very seriously and think about it carefully before we put your money to work.
The Coutts ISA contributes to our push for a better world in two key ways:
- up to 80% of the funds behind it aim to have a low carbon footprint and strong environmental focus
- it includes funds that do not invest in companies overly exposed to high impact fossil fuels
So it could be good for the planet as well as your cash.
5.
they're convenient
If you wanted to bring your investments together under one metaphorical roof for convenience, ISAs are pretty fuss-free to transfer from one place to another. It’s straightforward to do it through Coutts Invest, for example, for those who may have an ISA elsewhere and want to bring it over to Coutts.
ready to begin?
If you’d like to know more about how a stocks and shares ISA might work for you, visit our ISA page or speak to your private banker.
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