It's never too late to start saving for the future
Thursday, November 03, 2011
New Guaranteed Savings Plan from Foresters Friendly Society
Foresters Friendly Society announces the launch of a new affordable, easy to understand way to save for the future. From just £25 a month and with no upper age limit, the new Guaranteed Savings Plan* helps savers build a lump sum for the years ahead whether it's for a child's university fees, their first car, a wedding or a deposit on a flat. The Guaranteed Savings Plan can be used by parents or grandparents as an alternative to the new Junior ISAs and, depending on the length of term they choose, could enable parents to maintain control of the savings pot after their child reaches age 18.
The Guaranteed Savings Plan is suitable for anyone aged 16 years and over, saving from £25 to £100 a month and for a fixed term from between 10 and 25 years. Monthly contributions are invested in the Foresters Order Insurance with profits fund. The Plan guarantees to pay out at least the amount saved at maturity with the aim of adding to this through the addition of annual bonuses, plus a final bonus at maturity**. It also offers the potential for guaranteed in-built growth above and beyond what is paid in for plans with a contribution level of £26 or more.
Neil Armitage, Marketing Director at Foresters Friendly Society added: "As a mutual, our aim is to provide our members with a range of easily accessible, relevant and affordable financial products. The Guaranteed Savings Plan guarantees to pay out at least the amount you have saved at maturity and for contributions of £26 or above, it offers guaranteed in-built growth so the higher the monthly contribution, the larger the guaranteed in-built growth will be."
The table below compares three different potential growth rates for a Guaranteed Savings Plan#:
|Term: 15 years 0 months
|Total paid in:
|Example Guaranteed Maturity Amount:
|What might the policy pay out at maturity?
|If investments grew at 3% a year you would get back:
|If investments grew at 5% a year you would get back:
| If investments grew at 7% a year you would get back:
Armitage continued: "We believe it's important for individuals to rediscover the importance of long-term savings for a specific event. However, with recent market turmoil eroding savings and investments, it has become increasingly difficult for parents and grandparents to set aside a lump sum for children, grandchildren or a special occasion. As specialists in children's saving, we feel the Guaranteed Savings Plan is an ideal alternative to Junior ISAs and a great way for parents to maintain control of the cash pot."
*When taking out the Guaranteed Savings Plan, customers/investors will automatically enjoy the extra social and protection benefits of Foresters Membership.
**Subject to all contributions being made throughout the chosen term. Bonuses are not guaranteed and depend on the future investment performance and deductions of the Order Insurance with profits fund and how Foresters Friendly Society decide to distribute any profit.
#The figures shown are only examples and are not guaranteed. They are not minimum or maximum amounts. What you could get back depends on the length of your investment, how the investment grows and its tax treatment. You could get back more or less than this. The guarantee is that, subject to scheduled contributions being paid when due, at maturity you will not get back less than the guaranteed maturity amount which will be at least the sum of contributions. The yearly growth rates have been based on Foresters reasonable estimate of potential returns and are slightly lower than the maximum allowable investment growth assumptions. Inflation would reduce what you could buy in the future with the amounts shown.