Big Banks v Friendly Societies – who’s taking care of your money?
Want an alternative home for your savings? Why not consider saving with a friendly society?
In a climate where only 32% of consumers trust retail banks, and that figure falls to just 15% for investment banks (as reported by PwC), the UK’s friendly societies have an important role to play when it comes to providing fair investment opportunities to enable you to save for your, and your family’s, future.
Friendly Societies’ origins date back to the days before the welfare state, when a group of people got together to contribute to a mutual fund that they could then receive social and financial support from in times of need. At Foresters Friendly Society, we’ve been looking after our members, and their finances, for over 180 years. The Society’s mission is to make saving for the future an attainable goal for as many people as possible.
No shareholders to pay
As a mutual, member-owned business, Foresters Friendly Society has no shareholders to pay. Instead, any profits made are used for the benefit of Foresters policyholders (referred to as members) in the form of policy payouts and a member benefits package, which focuses on healthcare, educational support and discretionary financial assistance, all at no extra cost.
Simple, affordable savings plans
Foresters takes a responsible, long-term approach to savings and investments and provides plans that are simple and affordable – such as tax-efficient savings and investment plans – with a return that has the potential for more growth than that offered by traditional interest-only cash savings accounts, but is less risky than direct investments into stocks and shares.
Interested in finding out more about how friendly societies came about and why they are unique? We’ve a great little video that explains it all.
See 7 reasons a friendly society could be the right place for your savings for more information.
The membership benefits we provide aren’t regulated by the Financial Conduct Authority and the Prudential Regulation Authority and are regularly reviewed by us to ensure they are relevant to our members.
This blog is intended to provide information, not financial advice, to help you make an informed decision about savings and investments. We do not offer financial advice. You should contact a financial adviser, who may charge a fee, if you want financial advice.
You should also be aware that in some investment conditions and depending on the savings product you have chosen, you may get back less than you have paid in.
The PwC report: How financial services lost its mojo – and how to regain it, October 2014