Benefits of Friendly Societies
In today's uncertain financial climate, many people believe Friendly Societies offer a sensible option. Today, UK mutuals are big business. They account for over £116 billion in revenue every year and 1 in 3 people in the UK are a member of at least one mutual*.
Key benefits of Friendly Societies:
- No shareholders to pay - Friendly Societies have no external shareholders, they don't pay dividends to anyone or seek large profits or exceptional capital growth.
- Membership benefits - They use the revenues they generate for the benefit of their customers or members by investing in customer service and distributing any remaining profit to members in the form of bonuses or in the provision of a member benefits/benevolence package.
- Tax free savings - Because of their unique legal status, friendly societies offer tax-exempt savings products that are not available from other providers such as high street banks. Under current legislation, this means that each person (including children) can save up to a maximum of £25 a month in a friendly society tax free savings plan. Please be aware that tax rules may change and depend on individual circumstances.
- Helping people to help themselves - Whilst benefits can add value to taking out a product or policy with a Friendly Society, it should be remembered that mutuals are, and have always been, about helping people help themselves, playing a vital role in financial services and in today's society.
The service offered by Friendly Societies is as relevant as ever. As a mutual organisation ourselves, we offer a service which can make a positive impact on the lives of our members. This was, and still is, the main aim of Friendly Societies and is evident in everything we do from the provision of long-term savings products to the support we provide to members.
Foresters is an active member of the Association of Financial Mutuals.
* Source: The Mid-Term Mutuals Manifesto 2013 and the Mutual 2013 Yearbook
Read about the history of Foresters >>