So how does it all work?
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Making affordable payments
Saving for your future doesn't have to cost much. You can save £25 a month into our Tax Exempt Savings Plan.
If the plan is cashed in prior to maturity or you stop paying contributions, then you may get back less than you have paid in or nothing if this is in the first year.
Choose how long you want to save for
You can choose how long you want to save for - any period between 10 and 25 years. Your decision on how long you want to pay into the plan will determine when the plan will mature. You can even select the exact date on which you wish to receive your tax-free sum.
Please be aware that the Tax Exempt Savings Plan is not suitable as a short-term savings plan.
Guaranteed cash sum
As long as you maintain your monthly contributions for the plan’s full term, you’re guaranteed a minimum cash lump sum at the end of the term. And there’s the potential for bonuses to be added too.
Please remember that inflation will affect what you can buy with the proceeds of the plan. In the unlikely event that we could not honour the guarantee (i.e. if we were declared insolvent), you may be entitled to make a claim on the Financial Services Compensation Scheme.
How could my tax free savings grow?
All the money paid into the Tax Exempt Savings Plan goes into our with profits Order Insurance Fund, where we invest across a balanced mix of assets - including property, UK government bonds, equities and cash - to help minimise over-exposure to risk.
We aim to use any profits generated to add an annual bonus to your guaranteed sum and possibly a final bonus to be paid when your plan matures. In good years, we may hold back some of the return and use it to top up bonuses in years when the fund performs less well.
As with most investments, bonuses are not guaranteed so your plan may not receive an annual or final bonus. Bonuses will depend on the future performance of the with profits Order Insurance Fund and how we decide to distribute any profit.
Please refer to the Tax Exempt Savings Plan Key Information Document and Important Information for further information on how our Order Insurance Fund works.
Saving tax-free with Foresters Friendly Society
Only a Friendly Society can give you the additional tax advantages of a Tax Exempt Savings Plan, which provides you with a cash sum pay-out free of capital gains tax and income tax and which can be held alongside a NISA.
It's important you continue to make payments for the agreed period. If you don't make all the payments or the plan is cashed-in early, you could lose the tax benefits of the plan and end up having to pay tax on any gains.
You won't pay tax on the growth of your investment however, like NISAs, tax is automatically deducted from UK share dividends. You should also be aware that tax rules depend on individual circumstances and may change in the future.
Other benefits of taking out a Tax Exempt Savings Plan
As a Foresters member, you will have access to Foresters Extras - a range of discretionary benefits we offer at no additional cost which include:
- dental or optical grants to assist with covering costs are available to claim each year
- discretionary grants including Educational Awards to assist with the costs of higher education or training.
These membership benefits aren't regulated by the Financial Conduct Authority or Prudential Regulation Authority and are regularly reviewed by us to make sure our members get the best options.
Tax Exempt Savings Plan - Product Performance >>