If you’re planning to save into an ISA or Junior ISA before or after the tax year-ends, you can get an extra £100 from Orbis Access before 30 April.
What’s the deal exactly?
Orbis Access is matching investments made into a new stocks and shares ISA or Junior ISA before 30 April, up to £100.
What this means, is that if you open the Isa and put in £50, for example, Orbis Access will put in £50 too, bringing your total to £100. If you put in £75, Orbis will put in £75, taking your total to £150. Save £100 or more, and you’ll get an extra £100, which is the threshold for this offer – so putting in £2,000, for example, will give you £2,100 in total.
You can invest any amount that you want and this includes a single lump sum investment or the setting up of a monthly saving plan.
Transfers in from other ISAs will also be matched under the same rules, as long as the transfer is initiated by 30 April and is complete by 1 June. The boost from Orbis Access will be added to accounts after 1 May.
Why should I care?
It’s up to £100 worth of free money, which is great if you were planning to set up a stocks and shares Isa or Junior Isa anyway.
What’s the catch?
The biggest catch is that the money you initially save must be invested in one of two funds – the Orbis Global Equity Fund, which has returned just over 66% in the last three years to date, or the Orbis Global Balanced Fund – which is up 54.9% over the same time period (of course past performance is no indicator of future performance).
The other requirement is that the matched investment - the total amount you invested, plus the matched amount - must remain in the Isa or Junior Isa for a minimum of three years.
It’s also worth noting that Orbis Access’ fees vary depending on its performance. Last year its Global Equity Fund charged 2.38% while its Global Balanced Fund charged 3.68%.
However, money invested into its Junior Isa in the first 12 months is exempt from fees until your child turns 18.
What other options do I have?
In terms of Junior ISAs, the top pick in our 2017 Children’s Savings Awards was Fidelity, which provides managed solutions based on your risk profile, as well as a self-select option from a list of 50 funds. Here, you’ll pay an ongoing charge set by the fund manager, as well as a service fee (0.35% on average) depending on the amount you invest and what funds you invest in.
Vanguard LifeStrategy 40% Equity Fund would make a good core low-cost holding for a child. You could top up the investment with actively managed funds, such as CF Woodford Equity Income, Marlborough UK Micro Gap Growth and Stewart Investors Asia Pacific Leaders.
For those investing in an adult Isa, see Moneywise’s First 50 Funds for our recommendations.