Tax Exempt Savings Plan - Important Information
At Foresters Friendly Society, we explain to you exactly WHAT a product is, precisely WHY the product may suit your requirements and in simple to understand language, HOW you can apply.
It is also important for you to be aware of the following factors:
- You must continue your monthly payments throughout the term of the savings plan for the chosen period of years. If you do not maintain your monthly payments, you could lose the tax advantages of the plan and be liable to tax on any gains made on the investment. You may also lose some or all of the premiums paid.
- If you stop paying premiums in the first year, the policy will lapse with no value and you will not be able to have your premiums refunded. If you cash in the policy early, after the first year, you may get back less than you paid in.
- The Tax Exempt Savings Plan is not suitable as a short term investment. If the plan is cashed in before it has run at least three quarters of its term (or 10 years if this is a shorter time) the amount paid out will lose its tax-exempt status. A Bank or Building Society account allows ready access to funds whereas the Tax Exempt Savings Plan does not generally allow access to the funds until your plan matures.
- A Bank or Building Society has greater certainty of growth than a Tax Exempt Savings Plan. The addition of bonuses is not guaranteed and so it is possible that the Tax Exempt Savings Plan might not receive any annual and/or terminal bonus from the with profits fund.
- Please remember that past performance is not a guide to future performance.
- You should bear in mind that inflation will reduce what you can buy in the future with the fund.
You should keep your policy documents in a safe place - they contain important information about the Tax Exempt Savings Plan. You will also receive an annual statement showing how the Fund is performing.
You must read the Tax Exempt Savings Plans Key Features Document before you decide to invest.
