The Guaranteed ISA is a stocks and shares ISA designed for those looking to save or invest for the medium to long term. Typically at least five years.

It aims to take advantage of any stock market growth during the good times whilst, at the same time, offering the protection of valuable guarantees at five year points should the financial markets take a downturn.

You can choose to save a regular amount each month (from £40), invest a lump sum (from £1,000) or both.

We'll help you to reduce the risks normally associated with investing by applying our
Double Guarantee. Your first guarantee point is five years from the end of the tax-year you
first invest. Your guarantee points will then be every five years after that.

Guarantee one: At each guarantee point if the value of your investment has grown, we'll lock in any increase in value, for the next guarantee point.

Guarantee two: At each guarantee point if the value of your investment has fallen, we'll
restore it to the latest locked-in value or to the original amount you invested.

So if you decide to withdraw your investment on a guarantee date, you'll receive at least your guaranteed amount including any locked-in growth.

An example

The example below shows how this works.

A    Bob invests £10,680 in tax-year ending 5 April 2012

B     He doesn't take any money out so the guarantee on this part of the investment is
       £10,680 on 6 April 2017

C    The actual value rises to £13,100 by 2017. Since his investment has risen in value,
       the guarantee changes so that on 6 April 2022 it will be worth at least £13,100
       (provided he does not take any money out)

D    Bob also invests £10,680 in tax-year ending 5 April 2013

E     He doesn't take any money out so the guarantee on this part of the investment is
       £10,680 on 6 April 2018

F      The markets have fallen, so the actual value is £9,300. However, because of the
       guarantee, the value is increased back to £10,680. The guarantee is then also
       £10,680, which applies on 6 April 2023 to this part of the investment (provided
       he does not take any money out)

Figures are for illustrative purposes only.

It is very difficult to predict exactly what you'll get back as your payout will depend on a number of things such as our investment performance, the financial markets, our charges, how long you invest for, whether you make any withdrawals and whether there any tax implications.

If you do cash-in between the guarantee points, you could get back less than you have invested.

The Guaranteed ISA is for anyone who wants to take advantage of their full ISA allowance by investing in a stocks and shares ISA.

It's designed for those looking to save or invest for the medium to long term. Typically at least five years.

It aims to take advantage of any stock market growth during the good times whilst, at the same time, offering the protection of valuable guarantees at set points should the financial markets take a downturn.

It is very difficult to predict exactly what you'll get back as your payout will depend on the performance of our Life Fund, which is where your money is invested.

But remember, your money has the protection of valuable guarantees at five year points should the financial markets take a downturn. But if you do cash-in between the guarantee points you could get back less than you have invested.

There are no set interest rates for the Guaranteed ISA.

You can access money whenever you need to as there is no fixed term. But remember, the Guaranteed ISA is designed for those looking to invest for the medium to long term.

If you cash in between guarantee points, you'll get back what the ISA is currently worth, which may be more or less than you originally invested.

You can invest up to a maximum of £10,680 each tax year. However, whatever you invest in a Cash ISA must be taken away from your total ISA allowance of £10,680.

So if you invest £2,000 in a Cash ISA, you'll have £8,680 left to invest in a Stocks and Shares ISA in a tax year.

You also need to remember that you can only pay into one Stocks and Shares ISA each year.

When you withdraw your money there is no personal tax to pay.

Although it's important to remember the government can change tax rules at any time.

There is no fixed term so you can withdraw all or part of your money at any time. But remember, the Guaranteed ISA is designed for those looking to invest for the medium to long term.

If you do withdraw all your money in between the five year guarantee points, you may get back less than you originally invested.

You can top up your ISA at any time through regular payments or lump sum investments as long as you don't go over your personal ISA limit each tax year.

You can top up your existing Guaranteed ISA with a one off payment online or by calling our Customer Relationship Centre on 0845 88 22 999. You will need your plan number and debit card details to hand in order to do this.

> Top up your Guaranteed ISA

Most current and retired members of the Police Service can make regular payments direct from their salary or pension. Our payments page which will show you whether you can pay from your salary or pension.

For those who cannot pay from their salary or pension, we take payments by Direct Debit.

You can also make one off top up payments by debit card online. You will need your plan number and debit card details to hand in order to do this.

> Top up your Guaranteed ISA

Any current or retired members of the Police Service, aged 18-85 and living in the UK, can open a Guaranteed ISA.

And your family is welcome too. Partners and your wider family including parents, brothers and sisters, children and grandchildren can all benefit by opening a Guaranteed ISA and becoming members of Police Mutual.

The application process is simple and takes no more than a couple of minutes when you apply online. You'll need your national insurance number and your payroll or Direct Debit details to hand if you want to set up regular payments.

If you want to make a lump sum investment, you'll need your debit card details ready.

Additional checks

To comply with money laundering regulations, we sometimes have to carry out an online identity check with a reference agency when you apply.

The agency will add a note to your credit record to show that an identity check has been made. We won't share this information with anyone else and it won't affect your credit rating.

Yes you can transfer your current ISA to us as part of the application process if you wish to. Or wait until your Guaranteed ISA is set up.

Current tax-year ISA investments must be transferred in full, but previous years' allowances may be split between different providers.

ISA Transfer Management Service

We have a dedicated ISA Transfer Team to make sure everything goes as smoothly as it can. They'll keep you updated and look after the whole process for you whilst your transfer takes place. They'll also be able to answer any questions you have about transferring your ISA.

If you are considering transferring a Cash ISA to us, please remember that, unlike cash accounts which provide security because they are very low risk, with the Guaranteed ISA your money is only guaranteed on the guarantee dates.

We'll send you a statement each year which will show the performance of your Guaranteed ISA so you'll be able to keep track of your investment.

You can also contact us if you'd like an update in between your statements.

An ISA is an Individual Savings Account, which was set up as a tax-efficient personal savings plan to replace PEPs (Personal Equity Plans) in 1999.

It allows all UK taxpayers to save and invest up to a total of £10,680 within an ISA each tax year which means that the returns are free from any personal tax.

You can invest in two separate ISAs in any one tax year (which runs from 6 April to 5 April): a cash ISA and a Stocks and Shares ISA with the same or different companies.

Up to £5,340 can be invested in a Cash ISA and £10,680 in a Stocks and Shares ISA.

However, whatever you invest in a Cash ISA must be taken away from what you can invest in a Stocks and Shares ISA. So if you invest £2,000 in a Cash ISA you will have £8,680 left to invest in a Stocks and Shares ISA in a tax year.

You need to be 16 to start a cash ISA and 18 to start a Stocks and Shares ISA.

There are no set interest rates for the Guaranteed ISA.

It aims to take advantage of any stock market growth during the good times whilst, at the same time, offering the protection of valuable guarantees at set points should financial markets take a downturn.

You can top up your ISA at any time as long as you don't go over your personal ISA limit each tax year. You will need your plan number and debit card details to hand in order to proceed.

> Top up your Guaranteed ISA

You can also transfer any of your current ISAs to us at any time.

We have a dedicated ISA Transfer Team to make sure everything goes as smoothly as it can. They'll keep you updated and look after the whole process for you whilst your transfer takes place. They'll also be able to answer any questions you have about transferring your ISA.

If you are considering transferring a Cash ISA to us, please remember that, unlike cash accounts which provide security because they are very low risk, with the Guaranteed ISA your money is only guaranteed on the guarantee dates.

> Transfer an existing ISA to us