Formed in 1863 when it was known as the Blackburn Philanthropic Mutual Assurance Society, Red Rose Assurance offers a range of Shariah-compliant savings, investment and life cover policies for children and adults.
Stocks and Shares ISA (With-profits)
The Red Rose With Profits ISA gives you a way to save in a flexible way to potentially outperform a Cash ISA over the longer term. You can invest up to £20,000 each tax year into this ISA and the interest you earn is wholly tax-free.
Your investment is in the company’s With-Profits fund which offers a mixture of equities, gilts, corporate bonds, property and cash, reducing the volatility typically associated with stocks and shares. The ISA is flexible, which means there is no fixed term of years, and there is no set premium – you can pay in regularly by direct debit of £25 or more.
The current interim bonus rate is 3.5%. A terminal bonus may also be paid, ensuring that you receive your ‘fair share’ of the profits made by the Society’s with-profits fund whilst you have held the ISA. There is an annual management charge fee of 1.5% for this product.
Stocks and Shares Shariah ISA
The Red Rose Shariah ISA gives you a way to save, compliant with your Shariah beliefs, in a flexible way to potentially outperform a Cash ISA over the longer term. You can invest in a Shariah ISA in addition to your Cash ISA each year as long as you don’t exceed the annual ISA limit set by the government, which is £20,000 in the 2020/21 tax year.
The interest you earn is wholly tax-free. The ISA is flexible, which means there is no fixed term of years, and there is no set premium – you can pay in regularly by direct debit of £25 or more. The Fund is managed by a specialist team at HSBC, the HSBC Islamic Global Equity Index Fund (the Fund), which aims to create long term appreciation of capital through investment in a diversified portfolio of securities. It aims to track the Dow Jones Islamic Market Global Titans 100 Index which is Shariah compliant – all companies included in the Index are screened by the Shariah Supervisory Board which is a committee of 4 Islamic Scholars.
The Index does not include companies in the following sectors: Weapons and Defence, pork-related products, Tobacco, Alcohol, Financial Services or Entertainment sectors. The Fund are instead invested in diverse areas including Technology, Health Care, Consumer Goods, Industrials, Oil and Gas, Consumer Services and Basic Materials.
Junior Shariah ISA
This product is a tax-efficient account similar to the above, except it is designed to help give your children and grandchildren a head start in life; as such this ISA can be opened on behalf of any child resident in the UK, under 18 years. This product allows tax-free contributions of up to £9,000 in the 2020/21 tax year. This ISA is compliant with your Shariah beliefs and is managed by the HSBC Islamic Global Equity Index Fund which will only invest in Shariah compliant companies and sectors.
As well as ISAs, Red Rose also offer various tax-exempt savings plans, children’s savings plans, child trust funds, over 50s plans, life cover, funeral expense plans and more.
Red Rose Assurance Reviews and Ratings
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- An ISA compliant with Shariah beliefs
- It will not make investments in: Weapons and Defence, pork-related products, Tobacco, Alcohol, Financial Services or Entertainment sectors
- Instead it focuses on Technology, Health Care, Consumer Goods, Industrials, Oil and Gas, Consumer Services and Basic Materials
- Funds are managed by the HSBC Islamic Global Equity Index Fund
- Current bonus rate is 3.5%
- With-Profits fund offers a mixture of equities, gilts, corporate bonds, property and cash
- Fast easy online setup
- A useful library of downloadable supporting content
- Shariah-compliant Stocks and Shares ISAs only
- Cash ISAs, Lifetime ISAs or other ISA products not offered
- Specialist for those who share Shariah beliefs; certain sectors not invested in
- Annual management charge of 1.5%
- No online product reviews
- No customer feedback available
Website: Red Rose Assurance