Foresters Shariah Lifetime ISA
Investing gives you the chance to grow your savings, but there’s a risk that the value of your investment could go down as well as up.
What is a Shariah Lifetime ISA?
A Shariah Lifetime ISA is for those aged 18-39, to save towards their first home and/or later in life while keeping investments Shariah compliant.
Save up to £4,000 each tax year and boost your savings with a 25% Government bonus of up to £1,000 each year, free from UK tax.
Our Stocks and Shares Shariah Lifetime ISA invests your savings in the stock market to allow for better potential growth when investing for over 5 years.
As with all Lifetime ISAs, you can only withdraw money to purchase your first home and/or after turning 60. If you withdraw for any other reason then the Government penalty will apply and 25% will be deducted from the withdrawn amount, so you may get back less than you have contributed.
Shariah compliant investing with a supervisory board
Expert managers to make investment decisions
Monthly or single contributions can start from £20
Exclusive member benefits, a thank you from us to you
For flexible, tax-efficient investing without access/withdrawal restrictions check out our Stocks and Shares Shariah ISA.
What are the rules of a Lifetime ISA?
- Must be a UK resident 18-39 to open a Lifetime ISA.
- You can contribute up to £4,000 each tax year from your £20,000 overall ISA allowance and gain a 25% Government bonus up until your 50th birthday.
- Must be held for at least 12 months before using it for a first home purchase.
- Can only be used for homes valued up to £450,000 in the UK, that you must live in and purchase with a mortgage.
- If you’re buying a home with a partner, sibling or friend, both of you can save in your own Lifetime ISAs and combine your savings.
- Savings can be accessed penalty-free at age 60. Any withdrawals made prior to this, that are not used for purchasing your first home, will incur the 25% Government penalty.
- A Lifetime ISA should not be used instead of a workplace pension, but as an additional savings pot for retirement.
Already have a Lifetime ISA with us?
Our Shariah compliant investment
A Shariah compliant fund
Foresters (Schroders) Managed Islamic Global Fund
- Appointed Shariah adviser and supervisory board (Amanie Advisors Ltd)
- Only invests in companies included in the Dow Jones Islamic Market World (Net Total Return) Index
- Invest over the medium to long-term.
- Professionally managed fund by Schroders.
Risk rating: Medium
Product informationThe fund will not invest in companies where more than 5% of their total income is made from prohibited activities or industries, such as:
Alcohol and tobacco
Entertainment inc. Hotels/gambling
Pork-related products
Non-Islamic financial services
Weapons and defence
Also, any company whose financial arrangements are considered unsuitable for Shariah compliance such as unacceptable amounts of debt, cash or interest bearing securities. As the fund is managed in line with Shariah Investment Guidelines, it may perform less well than other funds that do not strictly adhere to these criteria.
The money in this Lifetime ISA is invested in stocks and shares. This gives good potential for your money to grow over the long-term, but there is a risk that value could go down as well as up. There is the chance you could get back less than has been contributed. Tax treatment depends on individual circumstances. You can withdraw money from a Lifetime ISA to buy your first home, or for later life at age 60. Other withdrawals will mean a 25% Government penalty, so you could get back less than you put in. It is not recommended to choose a Lifetime ISA over a workplace pension as you will loose out on employer contributions and it may impact your entitlement to means-tested benefits.
25%
Government bonus
Up to £1,000 each tax year
0%
Transfer or contributions fees
Including entry and exit fees
£20
Minimum contributions
With single or monthly payments
1.5% - 1%
Annual Management Charge
1.5% reducing to 1% after 10 years
Why invest with Foresters?
Highly rated
Our customers and members rate us 4.7 out of 5 for our service
Trusted
2.5 million customers trust us with over 5.2bn funds to look after
Established
Managing family finances and making a positive impact for over 150 years
We are unique
Foresters is one of a few UK providers that offer a Shariah Lifetime ISA
Get rewards by becoming a Foresters member
If you open an Lifetime ISA with us you become a member, and will have access to a range of exclusive benefits at no cost.
Member benefits are not regulated by the PRA or the FCA and may change in the future.
Transfer your ISA to Foresters
Transfer to our Shariah Lifetime ISA
We accept transfers from Stocks and Shares and Cash ISAs from other providers to our Lifetime ISA. We do not accept Lifetime ISA transfers.
Transfer a Junior ISA or Child Trust Fund
Transfer your child's savings to our Shariah Junior ISA to keep your savings under one roof.
Shariah Lifetime ISA FAQs
If you are a UK resident aged 18 – 39, you can open a Shariah Lifetime ISA. You should be looking to save to buy your first home or save for later on in life, or both.
We recommend you aim to invest for at least five years for better potential for growth. If using your money towards a first home, you will need to invest for at least 12 months before.
You are able to view the value of your Shariah Lifetime ISA 24/7 by opening your MyPlans account.
The Government (HMRC) pays the Lifetime ISA bonus typically on or around the 18th. If your contribution is applied to your Plan before the 5th of the month, the bonus will be paid that same month; otherwise, it will be paid the following month. You can check when the bonus has been paid into your Lifetime ISA by viewing the 'activity' section in your MyPlans account.
If you are planning to use your money towards purchasing a first home, you do not withdraw the funds directly yourself, because the Government penalty will be applied. If you are buying a house, contact Customer Services, who will guide you through the process.
Lifetime ISAs are subject to a Government penalty (25% of the withdrawn amount) if not used of the purchase of your first home or withdrawals made before you are 60. To withdraw money from your Shariah Lifetime ISA, please contact Customer Services. The unit price displayed is for the previous working day, which changes daily, this means you may receive a little more or less than what you have chosen to withdraw. The price you receive will be based on the date the withdrawal is requested. Once we have received all the necessary documents from yourself to perform the required security checks, we aim to process withdrawals within 5 working days. It can then take 3-5 working days for the money to reach your account.
No, we do not currently accept Lifetime ISA transfers, however you can open a new Lifetime ISA each tax year, making sure you only contribute towards one Plan each tax year.
We also do not accept Help to Buy ISA transfers.
If you are eligible for our other ISA (Stocks and Shares ISA or Lifetime ISA), you will be able to open this online in MyPlans.
We have no hidden charges. Our Shariah Lifetime ISAs have a 1.5% annual management charge reducing to 1% after 10 years, with no other charges.
Our Shariah Lifetime ISA could be the best for you if you are 18 or over and looking to start saving for your first home and/or after age 60. With a Government bonus of 25% on your savings! As our Shariah Lifetime ISA is a Stocks and Shares Lifetime ISA you will be investing your money and will need to be happy to take some risk.
There is no interest rate as our Shariah Lifetime ISA invests in stocks and shares and is not a Cash Lifetime ISA. Stocks and Shares Lifetime ISAs have the aim of providing better growth than cash in the long-term.
Our Shariah Lifetime ISA is protected by the Financial Services Compensation Scheme (FSCS) which means that in the unlikely event that we cannot meet our obligations you will be able to make a claim for the full value of the Shariah Lifetime ISA from the FSCS.
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About member Benefits
Description of member benefits that you may receive assumes you are a Foresters member. Members must be 18 years of age or older and must have an active Foresters Plan and maintain it in good standing. Foresters member benefits are non-contractual, subject to benefit specific eligibility requirements, definitions and limitations and may be changed or cancelled without notice. Member benefits are not regulated by the Prudential Regulation Authority or the Financial Conduct Authority and may change in the future.