Benefits of Friendly Societies
In today's uncertain financial climate, many people believe
Friendly Societies offer a sensible option. Today, UK mutuals are
big business. They account for £90 billion in revenue every year
and affect the lives of more than one in every three UK citizens.
More than 25 million people are members of at least one
Key benefits of Friendly Societies:
- No shareholders to pay - Friendly Societies
have no external shareholders, they don't pay dividends to anyone
or seek large profits or exceptional capital growth.
- Membership benefits - They use the revenues
they generate for the benefit of their customers or members by
investing in customer service and distributing any remaining profit
to members in the form of bonuses or in the provision of a member
- Tax free savings - Because of their unique
legal status, friendly societies offer tax-exempt savings products
that are not available from other providers such as high street
banks. Under current legislation, this means that each person
(including children) can save up to a maximum of £25 a month in a
friendly society tax free savings plan. Please be aware that tax
rules may change and depend on individual circumstances.
- Helping people to help themselves - Whilst
benefits can add value to taking out a product or policy with a
Friendly Society, it should be remembered that mutuals are, and
have always been, about helping people help themselves, playing a
vital role in financial services and in today's society.
The service offered by Friendly Societies is as relevant as
ever. As a mutual organisation ourselves, we offer a service
which can make a positive impact on the lives of our members.
This was, and still is, the main aim of Friendly Societies and is
evident in everything we do from the provision of long-term savings
products to the support we provide to members.
an active member of the Association of Financial
Association of Financial Mutual's website/The Mutual Manifesto
Read about the history of Foresters