OneFamily and Central Co-op
We’re proud to have partnered with Central Co-op to share our Lifetime ISA to help you build a tax-efficient lump sum to put towards your first home or towards retirement.
At OneFamily, we believe that everyone has the right to save towards their first home and we make that possible with our low minimum investment of just £25 a month.
Central Co-op Members will receive a £30 reward for opening up a Lifetime ISA*.
*a direct debit of £50 must be set up and eligibility for the reward is checked after 90 days.
What are lifetime ISAs?
Lifetime ISAs are Individual Savings Accounts that help people either buy their first home or save for retirement. The government tops up lifetime ISAs by 25%, so every time you pay in, the government does too. For example, if you pay in £100, it will give you an extra £25 on top.
You can invest up to £4,000 in your lifetime ISA each tax year, so there's £1,000 of government bonus available each year.
As with all ISAs, lifetime ISAs are tax-exempt. This means that no matter how much your investments grow by, you won't pay any tax on the money you withdraw.
You can open a OneFamily Lifetime ISA with a minimum £25 a month direct debit or a lump sum of at least £250. We charge an Annual Management Charge of 1.1% of the account value.
Our Lifetime ISA invests in stocks and shares, therefore it has good potential to grow over the long-term but the value can go down as well as up.
Not the right product for you? Check out our Central Co-op Junior ISA.
What are the lifetime ISA rules?
There are a few rules to be aware of:
Things to be aware of
The money you put in our Lifetime ISA is invested in stocks and shares. This means there's good potential for it to grow over the long-term, but there is a risk that the value could go down.
The alternative is a cash lifetime ISA which earns interest like a current account does.
There is also a penalty charge for taking your money out within 12 months or not using it for your first home or for retirement. This is known as the government withdrawal charge, see below for details.
See what your lifetime ISA could be worth
Choose how much you want to pay into your lifetime ISA and see how much your money could grow
This projection shows how your lifetime ISA could grow with low, medium and high performance. Remember, projections are not a guarantee of future performance and you could get back less than you pay in.
Please note: No more than £4,000 may be invested into a Lifetime ISA within a single tax year. This includes your initial investment and your monthly direct debit payments.
What is the lifetime ISA government withdrawal charge?
The government will charge you 25% of everything you withdraw if you:
This means you'll be charged 25% of the money you saved yourself plus the money the government put in. For example, if you put in £1,000 then the government will have added £250. If you withdraw the lot, your penalty would be 25% of £1,250, which is £312.50, leaving you with just £937.50.
Therefore, if you’re not intending to buy your first home with the money or keep it in the account until you turn 60, you might be best opening an ISA instead.
Why invest in a OneFamily Lifetime ISA?
There are a few things that really set us apart from other lifetime ISA providers. Here's just some of the reasons to choose OneFamily.
How to open a lifetime ISA with us
Choose which of our two funds you'd like to invest your money in. Once your Lifetime ISA is open, you can switch between funds at any time, free of charge.
Global Equity
For more adventurous long-term investors
Global Equity invests in company shares.
When deciding which shares to buy, Global Equity takes into account how sustainable companies' business models are and what they're doing to lessen their negative impact on the environment.
Annual Management Charge 1.1%
Risk rating
Lower HigherYou can find out more about Global Equity in our Key Information Document and Fund Factsheet
Despite having an investment focus on the climate, we've chosen not to apply a UK Sustainable Investment Label* for this fund. Find out why below.
Global Mixed
For more cautious long-term investors
Global Mixed invests at least 65% of your money into lower risk, fixed-interest assets, which makes this fund a more cautious investment option compared to Global Equity. This element of the fund doesn’t use Global Equity's climate-focused criteria.
Up to 35% of this fund invests in climate-focused company shares via the Global Equity fund.
Annual Management Charge 1.1%
Risk rating
Lower HigherYou can find out more about Global Mixed in our Key Information Document and Fund Factsheet
Ready to get started?
How will your money be invested?
Global Equity
Global Equity invests in company shares. The value of those shares changes as those companies make or lose money.
When selecting where to invest, Global Equity selects companies from the MSCI Index based on how likely they are to make money, as well as their climate credentials:
You can find out more about the systematic approach Global Equity uses when selecting company shares here: 'How we invest for a brighter future'.
Global Mixed
Up to 35% of Global Mixed is also invested in company shares using the same selection criteria as Global Equity.
The rest is invested in lower risk, fixed interest assets, which aren't chosen using a climate scoring system.
This could mean some investments are included that would have been filtered out of the Global Equity fund.
The fixed-interest assets reduce the risk of losing money when you invest in this fund but also limit how much the fund can make.
*UK Sustainable Investment Labels
"Sustainable Investment Labels" have been introduced to help investors find products that have a specific sustainability goal, although not every fund that uses sustainable criteria qualifies for these labels. Because the way Global Equity invests doesn't exactly align with the definition used for these labels, this product doesn't have a UK Sustainable Investment label.
More information on sustainability labels, and a reminder of how Global Equity targets sustainable environmental outcomes, can be found in our sustainability disclosure document.
Find out about UK Sustainable Investment Labels on the Financial Conduct Authority website.
Start investing - open a Lifetime ISA online today
