So how does it all work?
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Saving to suit you
Saving for your future doesn't have to cost much, just £25 per month, that's £5.76 per week. Contributions can be paid monthly by direct debit from your bank. Or better still, to help with budgeting, if you are a Royal Mail employee, or your employer allows, you can pay contributions weekly or monthly through deductions from your pay. What could be simpler!
Available to everyone aged between 16 and 74 years old, our Tax Exempt Savings Plan is designed for savers who are aren't already investing their £25 per month tax exempt savings allowance with a friendly society.
A cash sum when you want it
The Tax Exempt Savings Plan is a 10 year savings plan. At the end of the 10 years, you'll have a number of options; cashing in your plan, extending it for a further 10 years or leaving it invested. This provides flexibility and helps ensure you're not tied to saving for too long, just in case your circumstances change.
You can use the money from your plan for whatever you want; a holiday of a lifetime, buying a new car, caravan or helping towards purchasing a holiday home. You might even use it to do those home improvements you've always dreamed of. If you take out the plan to save for a child's future, you'll also benefit from knowing the money from the plan will be paid to you, so you can help to decide what it is spent on.
The potential for growth
The contributions you make will be invested in the POIS Flexible Growth Fund, which aims to achieve long term growth, while spreading risk across a range of investments. It invests mainly in shares, both UK and overseas, along with fixed interest investments, such as Government gilts, and property.
Please Note: The Tax Exempt Savings Plan is not designed to be a short-term savings plan. As the contributions you make are invested in a fund which holds assets including stocks and shares that can vary in price from day to day, the value of the plan may fall as well as rise and you may get back less than you have paid in. You should also be aware that inflation will reduce what you can buy in the future with the money paid into the plan.
For more information about the different types of investments and the POIS Flexible Growth Fund please see our Fund Information.
In-built life cover
One benefit of the Tax Exempt Savings Plan is that life cover is automatically included at no additional cost to you. Provided you keep paying your contributions, if you die, a nominated beneficiary can receive this cash sum or the value of the plan if this is higher. When you take out a Tax Exempt Savings Plan the personal illustration you are provided with will let you know how much the life cover will be.
It's tax free
The great thing about this type of savings plan is that the final payment you receive will be free of Capital Gains Tax and Income Tax. Only a Friendly Society can give you the additional tax advantages through this type of regular contribution savings plan, under which we don't have to pay tax on the investments in the fund, except for the tax automatically deducted from UK share dividends which we can't reclaim. Because of the favourable tax treatment, the Government has set a maximum limit of £25 per month for each investor.
Please Note: You should be aware that tax rules might change in the future and depend on individual circumstances.
Extra benefits at no additional cost
By taking out a Tax Exempt Savings Plan, you automatically become a member of Foresters Friendly Society. And with membership you'll have access to a range of brilliant extras that can give you support and assistance when you need it, including:.
A Personal Nurse Adviser - practical help and emotional support is available for any member with a serious health condition.
Financial grants for education and health care - we offer a number of discretionary financial grants for members who need support with things like higher education, dental care or convalescence.
The membership benefits we provide aren't regulated by the Financial Conduct Authority or the Prudential Regulation Authority and are regularly reviewed by us to ensure they are relevant to our members.
Find out more about the Extra benefits available on Foresters Friendly Society's website.
Before applying for the Tax Exempt Savings Plan, please read the Key Information Document and Important Information which explain how the plan works, its aims, the commitment you will need to make and the risks involved. It will help you decide if it's suitable for you.
If you have any questions, please contact us on 0800 622 417 or at firstname.lastname@example.org.