What is the Guaranteed Savings Plan?

The Guaranteed Savings Plan is a long-term regular savings plan designed to provide you with a guaranteed return at the end of your chosen term. 

When will I receive a pay-out?

The Guaranteed Savings Plan pays out at the end of your chosen term, for example on a specific birthday, anniversary or retirement or a certain number of years from when you take it out.  You can select a term from 10 years to 25 years.

Are there any age restrictions?

The Guaranteed Savings Plan is available to anyone aged 16 years or over and there is no upper age limit. 

Can I use the Guaranteed Savings Plan to save for a child?

You can use the policy to save for a child.  As the plan will be taken out in your name, you will have the reassurance that the money will be paid out to you, not the child, when the plan matures so that you can decide what the money is spent on.

Can I access my savings?

The monthly amount you pay into your plan should be seen as a long-term investment so as such your savings will not be easily accessible. If the plan is cashed-in early, or you stop making contributions, then you may get back less than you have paid in, or nothing if this is in the first year.  

What guarantees do you provide?

Once the savings term ends and all of your monthly contributions have been paid in, you are guaranteed to receive back at least what you have paid in as a lump sum.  What's more, if you contribute £26 or more into the plan each month, you are guaranteed to get back more than you have paid in. The higher the monthly contribution you choose, the higher the guaranteed in-built growth will be. To benefit from the guarantees in the plan, you should aim to maintain all your monthly contributions for the plan's full term.

Are there any charges?

As with any investment, there are costs in running the fund in which your contributions will be invested - including the costs of buying and selling assets. We deduct charges before we declare bonuses meaning that there are no additional charges for you to pay. For more information about charges, see the Guaranteed Savings Plan Key Features Document.

How do I choose the right plan?

You should consider your ability to make payments throughout the term of any plan. You may also wish to think about your attitude to risk the Product Performance when considering a plan.

I'm not sure if the Guaranteed Savings Plan is right for me. What should I do?

If you're unsure as to the suitability of this product you should seek advice from an Independent Financial Adviser. You may have to pay for this advice.

Can I choose how much my monthly contribution is?

Yes. When you take out a Guaranteed Savings Plan, you can choose to pay a regular monthly contribution of between £25 to £100.  We will collect your payments by Direct Debit from your bank account.

Can I choose how long I want the plan to run for?

Yes. The Guaranteed Savings Plan offers a range of terms from 10 to 25 years.  Once you have decided on the plan's term, this cannot be changed.

How do I pay?

Payments are by Direct Debit - which is why we'll ask you to provide your bank details when you apply.

What am I committing to?

Once you select the term, which can be from 10 to 25 years, you must continue payments throughout the full term of the plan.

Can I stop and start my contributions?

The Guaranteed Savings Plan is designed to be a medium to long-term regular fixed commitment.

What happens if I stop paying?

If you stop making contributions in the first year, the plan will lapse with no value - which means you will not be able to get your contributions back.

If you cash-in the plan during the early years, you may get back less than you put in by way of contributions.

What happens if I die?

If you die, a refund of contributions paid to date will be payable to your estate. This may be subject to inheritance tax.

How much could I expect to receive?

The amount you will receive is made up of a guaranteed maturity amount (equal to your contributions made throughout the term of the plan plus any in-built growth) plus any bonuses which have been added during the term and a potential final bonus. The addition of bonuses is not guaranteed.  You can request an information pack including a personal illustration.

Where is the money invested?

Any money paid into the Guaranteed Savings Plan is invested in Foresters Friendly Society's Order Insurance With Profits Fund. Here, we manage your money, alongside other investors' money. We spread all the money paid into the fund across a number of different types of assets that may include property, UK government bonds, equities and cash. If the return from any one particular asset type is poor, the investment may be protected from the full impact of this fall as other assets forming part of the overall investment may perform better.

What interest does the plan pay?

The Guaranteed Savings plan does not pay interest. Instead, the Order Insurance With Profits Fund provides your plan with the potential for growth above and beyond the guaranteed in-built growth by way of bonuses.  The level of bonuses you receive depends on the performance of our With Profits Fund. The addition of any bonus is not guaranteed.

How do bonuses work?

At the end of each year, we aim to declare an annual bonus, based on how the fund performs and the costs incurred. In addition, when the Guaranteed Savings Plan matures, Foresters may add a final bonus based on the overall investment growth achieved and expenses incurred. Although in some investment conditions the growth in the Guaranteed Savings Plan might not be as much as that on an interest-paying account, investing in this way means there is the potential for growth over and above the level which might be achieved on interest-paying accounts.

Who is Foresters Friendly Society?

Foresters Friendly are a mutual society, founded in 1834 by ordinary people with a common purpose - to support each other through financial and other difficulties.

We've been looking after our members, and their finances, for over 175 years, offering care and protection through relevant affordable financial products.

Since 1834 our aim has been to be open, approachable, honest and fair, treating all our members as individuals.

We always put the interests of our members first.

How safe is my money?

Being a mutual society means we have no shareholders, so all our profits are shared amongst our members through our bonus scheme and benefits package. You'll be pleased to hear that our funds have grown steadily over the years and our financial position remains strong. (Source: Reports & Accounts 2010)

What is a Friendly Society?

Friendly Societies have been around for hundreds of years. They were founded on the idea of mutuality - that if a group of people contributed to a mutual fund, an individual within the group could benefit in a time of need. The principles still apply - friendly societies are owned by, and operate in the interests of, their members. Unlike public limited companies, they use revenues to the benefit of their members rather than distributing profits to their shareholders.

How do Friendlies perform, compared to PLCs?

Research shows that, in 2009, PLC insurers paid out on average 3p to shareholders for every £1 invested by their customers. With no shareholders to answer to, mutual societies can ensure their profits are only used for their members benefits by sharing this amongst members, or re-investing to provide better returns, better value or higher levels of service.

(Source: Association of Financial Mutuals)

What is a Mutual?

UK financial organisations are all authorised by the Financial Services Authority (FSA) and are either mutuals or public limited companies (PLCs). Unlike a PLC, a mutual organisation has no external shareholders to pay in the form of dividends and does not seek to make large profits or capital growth.

Mutual organisations are owned and run for the benefit of its members and their profits are usually re-invested for the benefits of members, although some may be used for internal finance to ensure the mutual is sustainable, safe and secure.

Today, UK mutuals account for £90 billion in revenue every year and affect the lives of more than one in every three UK citizens. (Source: Association of Financial Mutuals)

I read somewhere about benefits - but I imagine I pay for those somewhere?

When you take out one of our policies or plans, you automatically become a member of Foresters. As a mutual, we don't have to answer to external shareholders. Instead, we use all our profits to benefit our members. All Foresters customers can take advantage of Foresters Extras, a range of benefits we offer at no additional cost.

Do I get any additional benefits as a Foresters customer?

All our customers benefit from Foresters Extras, a range of benefits we offer at no additional cost.

Where can I get help?

For help and support, please contact Foresters Friendly Society.