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Guaranteed Savings Plan

Future university costs or the trip of a lifetime, it’s easier to plan ahead with a long term savings plan you can rely on

Guaranteed Savings Plan

Product Performance

How will the Guaranteed Savings Plan grow?

The Guaranteed Savings Plan does not pay interest on the amount you have paid in. Instead, the with profits Order Insurance Fund aims to provide your plan with the potential for growth by way of bonuses.

What are bonuses?

Your monthly contributions are invested in our with profits Order Insurance Fund along with the other Order Insurance Fund policyholders (excluding those with ethical investments). Dependent on the performance of this fund, Foresters Friendly aim to add annual bonuses to increase the value of the guaranteed maturity amount of your plan.

When the time comes and the Guaranteed Savings Plan matures, we also aim to add a final bonus to the value of the plan. This is done to ensure that the plan's payout reflects your fair share of the Order Insurance Fund.

The addition of any bonuses is not guaranteed, however once a bonus has been added to the Guaranteed Savings Plan it cannot be taken away and will become part of the guaranteed value.

How do bonuses work?

We aim to pay bonuses in two ways:

1. Annually:

  • On the guaranteed maturity amount of the plan

The guaranteed maturity amount is the total amount you will pay into the plan when it reaches maturity plus any in-built growth and is the minimum amount you will receive when the plan reaches maturity. This is subject to you maintaining all your monthly contributions into the plan for the full term.

For example if you are saving £100 for 15 years, the guaranteed maturity amount for your plan is £19,290. So each year, if a bonus is declared it will be calculated on the total £19,290 instead of your total contributions for that year (£1,200).

  • On any previous bonuses declared on the plan

After the plan has been in place for a year, in addition to any annual bonus you receive on the plan's guaranteed maturity amount, an additional bonus may be paid on any previous bonuses that have been declared.

For example, if your plan has had a total of £150 in bonuses declared previously, this amount may receive a bonus too which all adds to the total value of the plan.

Once annual bonuses have been added to your plan, they cannot be taken away provided that you maintain your monthly contributions.

2. Final bonus on maturity of the plan:

When your Guaranteed Savings Plan matures, we also aim to add a final bonus to the total value of your plan.

Potential Guaranteed Savings Plan returns

The table below demonstrates the guarantee that you will get back more than you have paid in, plus the potential additional growth that could be achieved through the addition of bonuses. The guarantee is based on you maintaining the contributions for the plan’s full term.

GSP Graph

  • The potential return figures are shown after the deduction of charges, are only examples and are not guaranteed - what you will get back depends on how the investment grows and on the tax treatment of the investment.
  • The yearly growth rates are our reasonable estimate of what the investment returns could be and are subject to the maximum rates specified by the Financial Conduct Authority.
  • Please remember that this is a medium to long-term savings plan. If you cash it in before the end of the selected term you could get back less than you have paid in, or nothing if this is in the first year.
  • Tax rules may change in the future and depend on individual circumstances.
  • You should be aware that inflation will reduce what you can buy in the future with the returns.

Past Performance

The following annual bonus rates have been declared for the Guaranteed Savings Plan:

Year Annual Bonus Rates
2015 0.25% of the guaranteed maturity amount and 0.75% of previous bonuses
2014 0.25% of the guaranteed maturity amount and 0.75% of previous bonuses
2013 0.25% of the guaranteed maturity amount and 0.75% of previous bonuses
2012 0.25% of the guaranteed maturity amount and 0.75% of previous bonuses


The addition of bonuses is not guaranteed and will depend on the performance of the Order Insurance Fund and how the profits are distributed.

To find out more about the addition of bonuses and how we manage our fund please read our Principles and Practices of Financial Management (PPFM).

We may vary the design of a product to best meet the needs of our policyholders which may affect the timing and size of future bonuses. Therefore the above table is provided for information purposes only and should not be considered an indication of likely future performance.

Risk Category

The Guaranteed Savings Plan is classified as 'Low Risk'. This is suitable for low risk investors, who can be classified as follows:

  • You are willing to take a minimal amount of risk only.
  • You do not want to lose any of your capital.
  • You understand and accept that inflation could erode the value of your money over time.
  • You understand that Foresters Friendly Society regard a 'Low Risk' product to be one where the level of the guarantee within the product will ensure that you will receive at least the amount you have saved in the plan. This is subject to all contributions being paid over the term.

For more details about the Guaranteed Savings Plan, please read the Guaranteed Savings Plan Key Features Document.


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