Tax Exempt Savings Plan - Frequently Asked Questions
How much may I get back?
Our Tax Exempt Savings Plan is a With Profits policy. Bonuses are intended to be added yearly to the basic sum assured - with the possible addition of a final bonus being paid at the end of the term. Once bonuses are added they cannot be taken away and may increase the eventual cash payment, although they are not guaranteed. Bonuses will depend on the future investment performance of the With Profits Fund and how Foresters Friendly Society decide to distribute any profit. For more detailed and technical information about how we manage the fund, see ' How you share in the profits of Foresters'
Can I choose how much my monthly premium is?
Yes. If you apply for our Tax Exempt Savings Plan online the monthly premium you can choose is between £15 to £25. If you apply by post the monthly premium is fixed at £25. We will collect your payments by Direct Debit from your bank.
Under current legislation, each person (including children) can save up to £25 a month in a Friendly Society Tax Exempt Savings Plan. The payment limits apply to all such plans held in the person's own name. Any premiums above these limits will need to be invested in our other savings plans which may not be as tax-efficient e.g. an ISA or Bond.
If you already have a Tax Exempt Savings Plan, and your monthly premium is less than £25, you can increase your monthly contributions. Please contact the Member Services team on 0800 783 4162 for further details.
Can I choose how long I want the plan to run for?
Yes. The plan offers a range of fixed terms - from 10 to 25 years.
Are there any age restrictions?
The Tax Exempt Savings Plan is available to anyone aged 16 years or over and there is no upper age limit. Our Child Tax Exempt Savings Plan is available to anyone under 16 years of age.
What happens if I stop paying?
If you stop making payments within the first year, the Tax Exempt Savings Plan will lapse and have no value - which means you will get nothing back.
If you cash in early after the first year, depending on how many payments you have made and your payment amount, it may have a cash-in value. However, this is likely to be less than you have paid in.
Can I stop and start my premiums?
The Tax Exempt Savings Plan is designed to be a long term regular fixed commitment. Tax regulations mean you cannot normally stop payments for periods of time and restart them later.
I'm not sure if the Tax Exempt Savings Plan is right for me. What should I do?
If you are 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.
