Automatically increase your monthly contributions each year until you tell us to stop
Making the most of your ISA allowance makes financial sense, so if you need to gradually increase your monthly contributions to reach the annual ISA allowance, look to the Metfriendly Escalator.
The Metfriendly Escalator is an optional extra that you can add to our Monthly Savings ISA, Junior ISA and Lifetime ISA as a way to gently increase your annual total of monthly contributions, year on year.
Your salary usually increases every year, so it could make good financial sense to save a little of your pay rise and increase your ISA contributions every year.
How does it work?
Watch this video for a quick summary of the Metfriendly Escalator.
With the Metfriendly Escalator your fixed monthly contributions will automatically increase every year, in April, at an amount set by you, until you tell us to stop.
You choose the amount you want to “escalate” by each year. The minimum is a £10 increase.
You start your plan at £50 per month in September and set the escalator to £20. Your monthly contributions will automatically increase to £70 per month from April. The following year, in April, your monthly contributions will increase again, by the amount set by you. The increase will repeat year after year, however you can contact us at any time (by phone, email or letter) if you would like to change the increases or stop them altogether.
See how your savings mount up with the Escalator
Imagine you have a Monthly Savings ISA for 10 years.
You set the Metfriendly Escalator at £20 and start off by saving £30 a month.
Column 2 shows your contributions increasing by £20 every year.
Column 3 shows how the amount you’ve contributed to your ISA each year steadily rises.
Column 4 shows how much less is contributed without the Escalator applied and instead settling to pay £50 every month for 10 years.
|Year||Contribution per month with Escalator set to £20 annual increases||Total annual amount contributed with Metfriendly Escalator applied||Total annual amount with fixed £50/month contributions – Escalator NOT applied|
In both cases your ISA would be eligible for annual and final bonuses – but the rewards are more than double for those who use the Metfriendly Escalator, simply based on the amounts contributed.
See how it works with a Metfriendly Lifetime ISA
Example below shows how much your contributions could grow by setting the Metfriendly Escalator at £20 and start off by saving £100 a month.
The Lifetime ISA is eligible for annual and final bonuses plus the 25% government contribution, allowing for even greater rewards simply based on the amounts contributed.
|Year||Contribution per month with Escalator set to £20 annual increases||Total annual amount contributed with Metfriendly Escalator applied||
Total annual amount with fixed £100/month contributions – Escalator NOT applied
How to add the Escalator option
You can add the Metfriendly Escalator option at any time, but obviously the sooner you start, the sooner you will see a difference in the amount saved into your ISA.
New ISA applications
Within your ISA application is a dedicated section for “Monthly Contributions and Escalator Amount”
- First, decide how much you would like to contribute each month to your ISA
- Then select how much you would like to increase those payments by every year – the increase will be applied at the start of the tax year in April.
Adding Escalator to your existing ISA
Metfriendly Escalator can be added to any Metfriendly ISA that you contribute to monthly.
To add Escalator to an existing ISA please select from the options below
- Adjust my Monthly Savings ISA contributions
- Adjust my Lifetime ISA contributions
- Adjust my Junior ISA contributions