When you begin the onboarding process for Mutual Funds, you'll be prompted to choose between opening an ISA or a GIA account with Plum. We strongly advise for a careful choice before proceeding with your investment registration, as you won’t be able to change the type of your account once the onboarding is complete.

Plum offers a Stock and Shares ISA option for Mutual Funds, providing a tax-efficient investment platform where you don't pay income or capital gains tax on earnings within the ISA. This account allows investment in a diverse range of shares, funds, investment trusts, and bonds.

However, there's an annual allowance of £20,000 for ISA investments per tax year. This means if you have multiple ISA accounts (e.g., Stocks & Shares, Cash), the total investment across all accounts cannot exceed £20,000. Additionally, you can hold various types of ISA accounts, but you can't invest in more than one of the same type.

If you've already contributed to another Stock and Shares ISA in the current tax year, we recommend not opening a new one with Plum to avoid potential tax implications or regulatory issues.

GIA accounts are great if you've maxed out your ISA limit of £20,000 and still want to invest more. They're also handy if you already have a Stocks & Shares ISA with another provider, as you can't have two of the same type. Unlike ISA, the GIA accounts don't come with tax benefits, so you'll need to pay income tax and capital gains tax based on your personal tax situation.

Once you select an ISA or a GIA account during the onboarding process, you won’t be able to change the type of your account. Our investment provider, Quai, can only accommodate one account type per user, and once an account type is selected, it cannot be altered. Our system is not designed for account-type switches.