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
mutual*.
Friendly societies are a type of mutual organisation. We help
people to help themselves. As a mutual we have no external
shareholders, we don't pay dividends to anyone or seek large
profits or exceptional capital growth. We use the revenues we
generate for the benefit of our customers or members by investing
in customer service and distributing any remaining profit to
members in the form of bonuses and a possible membership
package.
Because of our 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. This unique tax-free type of savings plan can
be held in addition to ISAs providing you with an additional
tax break on your savings. Please be aware that tax rules may
change and depend on individual circumstances..
Foresters is an active member of the Association of Financial
Mutuals.
(* Source:
Association of Financial Mutual's website/The Mutual Manifesto
2010)
Read about the history of Foresters
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