What is it?

A tax-free* investment enabling you to save regularly over a fixed period.

Who can invest?

Anyone aged 16 or over can apply for one of these plans.  There is no maximum age.

How does it work?

You invest a fixed amount every month, half-year or year, for a fixed period (any number of whole years from 10 to 20).

At the end of the selected period, you receive a guaranteed lump sum – plus profit-sharing bonuses – free of tax*.

How much can I invest?

Every adult can invest from £10 to £25 monthly, or £50 to £150 half-yearly, or £100 to £270 yearly.

Examples of our tax-exempt* pure endowment plans

• The above projected figures for total tax-free* benefit are only examples and are not guaranteed; they are not minimum or maximum amounts.  What you will get back depends on how your investment grows and on the tax treatment of the investment.
  
  
• You could get back more or less than this.
  
  
• All firms use the same rate of growth for illustrations, but their charges vary.
  
  
• Do not forget that inflation would reduce what you could buy in the future with the amounts shown

Bonuses  -  your share of the profits

All the Society’s profits go back to the members in the form of bonuses, which are added to the basic guaranteed minimum sum payable when your plan matures.  The profits will depend on various factors, mainly the returns achieved on the investments and the Society’s management expenses, and therefore the bonuses cannot be guaranteed in advance.

Investment of the funds

Members’ funds are invested in a wide range of securities.  These currently include British government stocks, corporate bonds (debentures and loan stocks), equities (ordinary shares of mostly UK companies) and bank deposits.

*Tax

Under current legislation, the benefits receivable at the end of the fixed term (or on death) are free of all UK income tax and capital gains tax.

Your premiums are invested in a ‘tax-exempt’ fund, which is free of tax on its gross income and  capital gains.  However, tax credits on share dividends cannot be reclaimed by the fund.  The tax treatment of these plans and the underlying investments could change.

Stopping your payments

If you wish to stop paying into your plan you may do so at any time. Provided you
have paid at least three months premiums, you may claim the cash surrender value. During the early years of the term, the surrender value will be less than the total you have invested. If the policy is cashed in during the first 10 years (or during the first three quarters of the term whichever is shorter), tax may be payable on any excess of the surrender value over the amount invested. Alternatively, if you have paid at least one year’s premiums, you may convert to a ‘paid-up’ policy, which would provide a reduced benefit at the end of the term.

Death Benefits

This plan does not insure a lump sum on death. If you die before the end of the term of your plan, your nominee or estate would receive the refund of all premiums paid plus interest.

Investment limits

The minimum amounts you can invest in this plan are : £10 monthly (payable by
standing order), £50 if paid half-yearly, or £100 if paid yearly.
The aggregate maximum that you can invest in all tax-exempt friendly society plans (for each adult and for each child) is £25 monthly, £150 half-yearly or £270 yearly. If you already invest with another friendly society, that investment counts towards these limits.

To receive a personal illustration of this plan, with no obligation, please click below