Learn and apply

Here are the things you need to know before you apply for the Prudential ISA. We do not offer advice for the Prudential ISA so you'll need to be confident making your own investment decisions. If you are unsure about making investment decisions speak to a financial adviser.

Please read through our services and costs document.

See our existing customer page if you have invested in the Prudential ISA through your financial adviser.

The Prudential ISA is a Stocks and Shares ISA that provides a tax-efficient way to invest. The ISA allowance for 2017/18 tax year is £20,000. You can subscribe only to one Stocks and Shares ISA, Cash ISA and Innovative Finance ISA in each year. To invest in the Prudential ISA you must be 18 or over and be a resident in the UK.

The Prudential ISA is provided by Capita Financial Investments Limited, the ISA plan manager.

Benefits

  • A tax-efficient way to invest.
  • One simple annual management charge.
  • Start investing from £50 a month or a £500 lump sum.
  • Transfer your other Cash or Stocks and Shares ISAs from other providers.
  • Flexible access to your money. No exit penalties.

Risks and considerations

  • The value of an investment can go down as well as up and the value in the future may be less than the amount invested.
  • You will need to balance the level of risk you are comfortable with taking, against the potential rewards you want to achieve.
  • This is a medium to long term investment, so you should be able to invest your money for five to 10 years.
  • You need to regularly review your investment decisions so they continue to meet your investment goals.
  • There may be a delay in access to your money, and maximum and minimum amounts apply for withdrawals.

Please read the key features of the policy within the Prudential ISA.

If you are unsure about making investment decisions speak to a financial adviser.

Next step

Why the Prudential ISA?

To find out more click on the 'Why the Prudential ISA?' tab.

The Prudential ISA has been designed to be an easy to invest in Stocks & Shares ISA. Here’s what you can do:

Invest in a tax-efficient way

You don’t pay tax on any income or capital gains from your investments. For 2017/18, the ISA allowance is £20,000.

Simple, straightforward investing

Choose from four risk managed PruFund funds, built and managed for you by investment experts. Each one has its own risk rating so simply select which is right for you depending on the level of risk you are willing to take.

One simple charge

We will not charge you for making withdrawals, switching funds or transferring other ISAs to the Prudential ISA.

Easy to get started

Invest from as little as £50 per month regular deposit or a lump sum of £500 and you can apply today.

Transfer your other ISAs

You can bring together your existing ISAs by transferring some or all of them to the Prudential ISA. Prudential do not charge you for transferring ISAs in, however, some ISA managers may charge for transferring money out.

Accessing your money

You have flexible access to your money through either regular or one off withdrawals and you can leave the fund at any time, including full encashment of your ISA. There may be a delay and maximum and minumum amounts apply for withdrawals. For more details please see the Key Features document.

Next step

How it invests

To find out more click on the 'How it invests' tab.

Prudential ISA includes risk managed PruFund funds which aim to grow your money using diversification and smoothing for a steadier investment journey. See how this works in our PruFund explained video.

The PruFund funds:

  • Invests in one of the largest With-Profits fund in the UK

The size of our With-Profit Fund allows Prudential to invest in a wider range of assets providing a greater spread of investment risk. We have over £66bn1 currently invested.

  • Are multi-asset funds

Multi-asset funds spread investment risk across a range of asset-classes shares, bonds, property and cash. The spreading of investment risk is known as diversification. It aims to offset poor performance in one asset against good performance in another smoothing the performance of the investment overall.

  • Are managed by experts   

Prudential Portfolio Management Group Limited (PPMG) - a dedicated team of in-house investment experts, ensure the funds objectives are met with the aim of growing your money over the medium to long term.

  • Has a unique smoothing process

We set Expected Growth Rates (EGR) for each PruFund fund. EGR's reflect our view on how we think the funds will perform over the long term but are reviewed quarterly. They are not a guarantee of future performance. On a daily basis if the actual asset performance differs too much from the PruFund fund EGR we would have to amend the value of your fund - either up or down. We call these Unit Price Adjustments. This means that whilst your investment won't experience the full lows of the market, you also won't experience the full highs. There may be times when we need to suspend the smoothing process for one or more of the PruFund funds.

Watch our PruFund explained video to find out more.

1Source: Prudential. 01/2017.

Next step

Choose a fund

To find out more click on the 'Choose a fund' tab.

  • The Prudential ISA online offers you four risk managed PruFund funds. You need to choose one to apply, depending on the level of risk you are willing to take.

           See how PruFund funds are managed.

  • The Annual Management Charge is deducted from your investment and if it exceeds the return earned then the value of your investment will go down. Charges may vary in the future and may be higher than they are now.
  • Each fund invests in the same assets, but in different proportions. The name of each fund indicates the amount of shares each fund can hold, ranging from the lowest proportion (PruFund 0-30) to the highest (PruFund 40-80). As a general rule, the greater the proportion of shares in a fund, the greater the potential risk and reward.

Use the scale to explore the funds in more detail

Make sure you understand the risk ratings of our funds before you make your fund choice. We rate the risk of each fund on a scale of 1 to 6 with 1 being the lowest and 6 being the highest. The four funds available with the Prudential ISA are 2, 3 or 4 on this scale. If you are looking for a higher or lower risk investment you may wish to consider alternative options.

Learn important information on the risk and reward scale.

Potential Risk
Low
1 2 3 4 5 6
High
Potential Return
2

PruFund 0-30

How your money is invested

This is our lowest risk and reward fund choice in the Prudential ISA with a risk rating 2. It can invest from 0% to 30% in shares.

20.0% Shares
10.0% Property
63.0% Bonds
7.0% Cash

Charges

Annual Management Charge 1.35%

3

PruFund 10-40

How your money is invested

This is a fund with a risk rating 3. It invests between 10% and 40% in shares. So it has a lower risk and reward profile than PruFund 20-55, but higher than PruFund 0-30.

31.4% Shares
13.6% Property
49.5% Bonds
5.5% Cash

Charges

Annual Management Charge 1.35%

3

PruFund 20-55

How your money is invested

This is a fund with a risk rating 3. It invests between 20% and 55% in shares. So it has a higher risk and reward profile than PruFund 10-40, but lower than PruFund 40-80.

43.3% Shares
16.7% Property
36.0% Bonds
4.0% Cash

Charges

Annual Management Charge 1.35%

4

PruFund 40-80

How your money is invested

This is the highest risk and reward fund choice in the Prudential ISA with a risk rating of 4. It can invest between 40% and 80% in shares.

56.4% Shares
18.7% Property
22.4% Bonds
2.5% Cash

Charges

Annual Management Charge 1.35%

See our Your With-Profits Plan - a guide to how we manage the Fund (PruFund range of funds).

The asset allocations shown are as at end of 09/2016. Asset allocations are regularly reviewed and may vary from time to time but will be consistent with the fund objective.

Next steps

Apply for the Prudential ISA

Apply now

If you are 18 years of age or older and meet the HMRC UK residency rules for tax purposes you can invest. If you are unsure whether you meet these rules, please refer to the HMRC website.

The 2017/18 annual limit for new investment into a Stocks and Shares ISA is £20,000 for a single tax year.

You can open a Prudential ISA with as little as £50 per month per fund or a £500 lump sum per fund. You can stop, restart, increase or reduce payments whenever you like.

You can invest your annual ISA subscription across any type of ISA (Stocks and Shares ISA, Cash ISA and Innovative Finance ISA) but you can't invest in more than 1 type of ISA in any one tax year.

The annual management charge of each PruFund fund is 1.35%, which is taken by deducting units of the appropriate PruFund fund each month.

There is a 30 day cancellation period for each lump sum, transfer and for the first regular payment which runs from when you receive the cancellation notice. If you cancel during this period, you will get back what you invested. If you cancel a transfer, Capita Financial Investments Limited will attempt to return the transfer amount to the previous ISA manager but if that is not possible Capita Financial Investments Limited will return to you the transfer value.

You can access your money at any time through the ISA plan manager, Capita Financial Investments Limited, no exit penalties apply. You can make full, partial or regular withdrawals. The minimum withdrawal for regular and partial withdrawals is £50 and you must leave at least £500 in each fund. Regular withdrawals can be taken on a monthly, quarterly, half yearly or annual basis, subject to limits. They can be taken on either the 5th or 20th of each month.

With a Cash ISA, all your money will be invested in cash - a bit like a savings account with a bank or building society. Prudential do not offer a Cash ISA. With a Stocks and Shares ISA, your money will be invested in a range of assets depending on the fund you choose.

Transferring your existing Cash or Stocks and Shares ISA is a simple process that we can arrange for you. For more information, please refer to our transfer page.

Capita Financial Investments Limited is the ISA plan manager. They are responsible for all regulatory and legal aspects of the ISA and the provision of all customer services, including issuing contract notes, statements and other post-sales communications.

An email address is required to apply for this product. If you do not have an email address you can create a new account free of charge through providers such as hotmail, gmail, bt, etc.

We are covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the Scheme if we cannot meet our obligations in relation to the Policy within the Prudential ISA. For more information please see the ISA terms and conditions.

If you would like to close your Prudential ISA please contact Capita Financial Investments Limited, the ISA plan manager on 0344 335 8969.

To make changes to your existing Prudential ISA, make an additional lump sum investment, transfer an existing ISA, or set up a new regular monthly investment, please view our Existing customers page.

The Policy is a life insurance policy issued by Prudential Assurance Company limited and is the means by which the PruFund funds can be made available in the ISA. For more information about the Policy see the Key Features of the Policy within the Prudential ISA and the Master Insurance Agreement.

Get in touch

Talk to us

If you are new to the Prudential ISA and would like to talk to us about the information on our website, please call:

0800 640 9110

9:00am - 6:00pm, Monday to Friday

Existing Prudential ISA customer

If you would like to talk about an on-going application or are an existing Prudential ISA customer and would like more information on your Prudential ISA plan, please call Capita Financial Investments Limited:

0344 335 8969

8:30am - 5:30pm, Monday to Friday