Investment Bond

A lump sum investment with the

Potential to grow

If you have a lump sum that you think could work harder, our Investment Bond could be for you. It aims to make the most of your money, offering the potential for long-term growth over five years or more. And all free from basic rate income tax or capital gains tax. The future could look pretty rosy.

Invest from

£5,000-
£150,000

Potential for

bonuses

on your investment

Open in

single or joint

names

Invest for

5+ years

Saving for your future, be it a rainy day, a big anniversary celebration or your retirement, needn’t be complicated. Our Bond can be taken out in joint names, which is ideal for couples wishing to invest. And, with our expert fund managers looking after your investment and the ability to withdraw up to 5% each year tax-free, what is there not to like?

Why choose our Investment Bond?

A great way to invest a lump sum of £5,000 – £150,000 with the potential for growth over five years or more.

Available to all UK residents aged 18 to 80.

Your money is invested in our top performing With Profits fund and has the potential to grow thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Access to Foresters Extras – membership benefits – including discretionary grants to help you to cover the cost of things like higher education and healthcare costs.

You can apply in joint names – perfect for couples.

You can make withdrawals from your Bond, ideal if you need to access your money (subject to conditions).

Deborah, Hampshire

“The Educational Award grant has been a great help in covering some of the costs associated with completing my HND in Art and Design…

I’m very grateful to Foresters Friendly Society for providing this financial assistance and would encourage anyone to join, not just because of the support offered to members, but also the opportunity to join in with some fantastic social events.”

Read More

A real-life example

A £10,000 Investment Bond taken out on 1st November 2008 and surrendered on 1st November 2018 received a pay out of £17,123.95, on the basis of no earlier withdrawals being taken. This is total growth, after charges, of 71.2% or 5.5% per annum.

Past performance should not be seen as a reliable indicator of future results and the addition of annual and final bonuses is not guaranteed.

  • The final bonus rate is based on the year the money was invested into the plan and can change at any time.
  • The above graph is provided for information purposes. The potential for future bonuses depends on the performance of the Order Insurance Fund and how we distribute any profit.

Ready to invest a lump sum? Apply today!

Added value for you – Foresters Extras

Taking out an Investment Bond is only the start. By doing so, you’re part of the Foresters Friendly Family and can enjoy some wonderful, unique benefits such as discretionary grants to help with dental and optical costs.

Find out more

Common questions

Can a Bond be taken out in joint names?

The Bond can either be opened in your name (single life) or both your name and another’s name (joint lives) which can be ideal for couples.

If the plan is taken on a joint names basis, both planholders are automatically treated as holding equal shares in the Investment Bond. If one planholder passes away, the other automatically becomes the sole planholder of the Investment Bond.

If an Investment Bond is set up in joint names this will be on a second death basis. That means that the death claim is not paid until the death of the second of the two lives and the Bond comes to an end at this stage.

We’ll send the annual statement and other correspondence to the first named planholder. If you would like to make any changes to your Investment Bond, the signature of the planholder or, in the case of joint life policies both the planholders, will be required. Just let us know and we’ll tell you what you need to do.

Can I make additional payments into the Investment Bond?

You can invest a single lump sum of between £5,000 and £150,000 into the Investment Bond. You cannot add to your lump sum Investment Bond once it’s in place, but if you want to invest more money, then you simply need to open another Bond.

Can I make withdrawals from my lump sum Bond investment?

Yes, you can make one-off withdrawals of at least £250 at any time, as long as the remaining balance of your Investment Bond does not fall below £500. You can also make regular monthly, quarterly, half yearly or annual withdrawals, of at least £50, as long as the value of your Bond remains over £5,000.

You need to remember that making withdrawals could reduce your Investment Bond to less than its initial value and could also have tax implications (please see the common question below for further details) .

For further information on the terms of withdrawals please take a few minutes to read the Important Information document.

What are the tax implications with an Investment Bond?

You can withdraw up to 5% each year of the amount you have paid into your Bond without paying any immediate tax on it. This allowance is cumulative so any unused part of the 5% limit can be carried forward to future years (although the total cannot be greater than 100% of the amount paid in).

However, if you decide to withdraw more than 5% per year and/or you cash in your entire Bond, we will calculate any gains on your money, and you may be subject to Income Tax. For higher or additional rate taxpayers this means that there may be an amount of tax to pay. Please note that tax rules may change and depend on individual circumstances.

For further information please read the Important Information document.

Can the Investment Bond be written in Trust?

Yes, that’s absolutely fine. You can place your Investment Bond in Trust. You may want to take advice from a solicitor before doing this.

Where is the money invested?

Your money is invested in our Order Insurance Fund with the aim of providing investment growth. Dependent on the performance of our fund, we aim to add annual bonuses and a final bonus to your Bond which will increase your plan’s value. The addition of bonuses is not guaranteed.

We never forget it’s your money, so we take extra good care of it. Within our fund, your money is spread across a number of different types of investments including property, equities, cash and UK government bonds, to help minimise risk and increase the potential returns. You won’t have to make any investment choices, our expert fund managers manage the fund on your behalf.

Please see the Principles and Practices of Financial Management (PPFM) for the latest information on our investment strategy.

What interest does the plan pay?

The Investment Bond doesn’t pay interest. Instead, by investing the money you pay into the plan into our Order Insurance Fund, which is a with profits fund, we provide your plan with the potential for growth by way of bonuses. Any profits generated by the fund are used to add an annual bonus to your Investment Bond and possibly a final bonus when you withdraw your money.

We have paid annual bonuses on our Investment Bond for the past 15 years.

  • In 2018 the annual bonus rate was 1.5%.

The annual bonus is applied to the amount invested (minus any withdrawals you may have made from your Bond) plus any previous bonuses that have been added.

The addition of any bonus is not guaranteed and you may not get back the full amount originally invested, dependent on the investment conditions at withdrawal.

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 planholders 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.

Are there any charges?

There is an Annual Management Charge which is initially set at 2% of the value of your Investment Bond. And because we don’t believe in hidden costs, we deduct charges upfront before we declare bonuses. This means there are no additional charges for you to pay. This charge could increase, but we promise it will never be more than 3% of the value of your Bond in any one year. The charges are designed to cover our costs for administering the Bond on your behalf.

For more information about charges, please see the Investment Bond Key Information Document and Important Information.

What happens if I cash-in the Investment Bond?

Being a with profits investment, your Investment Bond will benefit from growth the longer it is kept invested. Ideally for a minimum of 5 years but the longer the better. However, you can cash-in your Bond whenever you want. The cash-in value will depend on the amount invested, the amounts that have been withdrawn and any annual bonuses that have been added. Depending on the investment returns achieved and our costs, in good investment conditions we may also add a final bonus. However, in not-so-good investment conditions, we may apply a Market Value Reduction (MVR) which will reduce the plan’s value and may mean you get back less than was paid in.

For more details please take a few minutes to read the Important Information document.

I am not sure if an Investment Bond is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser.

Ready to get started? APPLY ONLINE

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418

Tax Exempt Savings Plan

Get saving for a

tax-free future

If you thought ISAs were the only way to save tax-free, think again. Our Tax Exempt Savings Plan offers you an additional tax-free allowance. Save regularly and you’ll see a guaranteed cash sum. Good news for you. And good news for your money.

A guaranteed

tax-free

sum

Potential for

bonuses

on your savings

Save just

£25

a month

Choose to save for

10 to 25

years

You might expect saving for the future to be a costly exercise. Not with our Tax Exempt Savings Plan. It’s affordable saving of only £25 a month. What you’ll get out, however, is something altogether more exciting. Not only is it tax-free, but it’s guaranteed too. And as long as you keep making payments for the agreed period, you’ll see a tidy tax-free sum. Plus there’s the opportunity for growth through the addition of bonuses. The only problem is wondering what to do with it when it matures!

Why choose the Tax Exempt Savings Plan?

An affordable and guaranteed way of saving regularly for your future by setting up a monthly Direct Debit of just £25 for your chosen term.

Available to all UK residents aged 16 to 80.

It’s extra useful because it’s an additional tax-free allowance on top of your annual ISA allowance.

Your money is invested in our top performing With Profits fund and has the potential to grow thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Choose how long you want to save for from 10 to 25 years. You can even select the exact date such as a special anniversary, birthday or retirement.

Access to Foresters Extras – membership benefits – including discretionary grants to help you to cover the cost of things like higher education and healthcare costs.

Gemma, Hampshire

“I’ve had savings accounts before, mainly with my bank, but I always used to end up taking my money out of them soon after I put it in. With the Tax Exempt Savings Plan I put in £25 each month by Direct Debit that is then locked away. My money is growing and I’ve been paying in for 10 years already. It’s amazing how quickly it has gone. My Tax Exempt Savings Plan will mature in 5 years’ time so I am already planning what I will do with the cash payout!”

Read More

A real-life example

A £25 per month Tax Exempt Savings Plan which commenced in November 2008 with a 10 year term provided a payout of £3,438.78 at maturity. This is an average annual return of 2.7% and a total return of 14.6%, after charges.

Past performance should not be seen as a reliable indicator of future results and the addition of annual and final bonuses is not guaranteed.

  • Following a re-price, all TESPs taken out from 1st January 2018 will have a guarantee of 91% of contributions. This change to the guaranteed amount does not impact the future investment performance of your plan, but does mean the amount you receive at the end of the plan could be lower than your contributions.
  • The final bonus rate is based on the year that the policy commenced and can change at any time.
  • The above graph is provided for information purposes. The potential for future bonuses depends on the performance of the Order Insurance Fund and how we distribute any profit.

Ready to start making tax-free savings? Apply today!

Added value for you – Foresters Extras

Taking out a Tax Exempt Savings Plan is only the start. By doing so, you’ll be a part of the Foresters Friendly family and can enjoy some wonderful, unique benefits including discretionary grants to help you cover the cost of things like higher education, dental and optical costs.

Find out more

Common questions

Can I open more than one Tax Exempt Savings Plan?

In a word, no. You see, under current legislation each person (including children) can save up to a maximum of £25 a month in a Friendly Society tax free regular savings plan. And because monthly contributions for this plan are fixed at £25, you can’t hold more than one plan.

However, any contributions above these limits can be invested in our other savings plans.

What if I already have an ISA?

That’s ok. A Tax Exempt Savings Plan like this provides you with an additional tax-free allowance, in addition to your ISA allowance. You don’t need to pay capital gains or income tax on the returns, even if you’re a higher rate tax payer.

However, if you stop your monthly payments into the plan, or you cash it in early, you could end up having to pay tax on any gains. Tax rules may change in the future.

What is the guarantee?

Our Tax Exempt Savings Plan guarantees that the minimum amount you will get back at the end of your chosen term is 91% of the monthly contributions you have made, as long as you keep paying in the monthly contributions for the full term.

And, whilst the addition of bonuses is not guaranteed, there’s the potential for bonuses to increase the amount you receive. Once added a bonus cannot be taken away and will become part of the guaranteed value, subject to all monthly contributions being paid.

As further protection for you, we’re covered by the Financial Services Compensation Scheme. This means that in the unlikely event that we could not honour the guarantee (i.e. if we were declared insolvent), you would be able to make a claim under the Scheme.

Are there any charges?

As with any investment, there are costs in running the fund in which your contributions will be invested. These include the costs of buying and selling assets. And because we don’t believe in hidden costs, we deduct charges upfront before we declare bonuses. So there are no additional charges for you to pay. For more information about charges, see the Tax Exempt Savings Plan Key Information and Important Information documents.

Where is the money invested?

The money you pay into the plan is pooled together with other policyholders’ money. Then it gets invested in our top performing With Profits fund. This fund invests in a mix of assets including property, equities, cash and UK government bonds, to help minimise risk and increase the potential for returns. The best part is that you don’t have to be an investment whizz. Our in-house expert investment team, alongside our external investment managers, will manage the fund on your behalf – and make all the investment choices for you.

Please see the Principles and Practices of Financial Management (PPFM) for the latest information on our investment strategy.

What interest does the plan pay?

The Tax Exempt Savings Plan doesn’t pay interest. Instead, our with profits Order Insurance Fund provides your plan with the potential for growth by way of bonuses. The better the fund does, the more bonuses you could potentially see. Any profits generated by the fund are used to add an annual bonus to your guaranteed sum and possibly a final bonus when the plan reaches the end of its term.

Since 2010 the following annual bonus rates have been declared for the Tax Exempt Savings Plan:

  • 0.25% of the guaranteed maturity amount and 0.75% of previous bonuses

The guaranteed maturity amount is 91% of the total amount you will pay into the plan when it reaches maturity and is the guaranteed minimum amount you will receive. This is subject to you paying all your monthly contributions into the plan for its full term.

For example if you are saving £25 for 10 years, the guaranteed maturity amount for your plan is £2,730. So each year, if a bonus is declared it will be calculated on the total £2,730 instead of your total contributions for that year (£300).

Additionally, if your plan has had a total of £70 in bonuses declared previously, for example, this amount may receive a bonus too which all adds to the total value of the plan.

The addition of bonuses is not guaranteed, however once a bonus has been added to the plan it cannot be taken away and will become part of the guaranteed value, subject to all monthly contributions being paid.

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 rates are provided for information purposes only and should not be considered an indication of likely future performance.

Can I make withdrawals from my Tax Exempt Savings Plan?

No, we’re afraid not. Tax Exempt Savings Plans like this one are a fixed term regular saving plan so withdrawals are not possible until the plan matures. It’s all about playing the long game.

What happens if I stop paying?

We’d urge you to keep up payments if possible. But if you have to stop paying in, especially in the early years, you’re unlikely to receive as much as you have paid in. And if you stop paying in the first year, the plan will lapse with no value.

What happens if I pass away?

If you pass away, a refund of contributions paid to date will be payable to your estate. This may be subject to inheritance tax.

I’m not sure if the Tax Exempt Savings Plan is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser. Of course, you may have to pay for this advice.

Ready to get started? APPLY ONLINE

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418

Stocks & Shares ISA

An ISA with

More potential

Putting a little away for the medium to long term is always a good idea, especially if you have something special in mind for a birthday, your retirement or a rainy day. Our Stocks & Shares ISA has flexible saving options and offers potential growth thanks to the possibility of bonuses. Whatever you’re planning could be a reality sooner than you thought.

Potential growth
thanks to
bonuses

Save up to

£20,000

this tax year

Flexible

saving options

Transfers

accepted

We all have financial goals. Whether it’s something we’ve always wanted to do, or just a cushion for a little reassurance. Our Stocks & Shares ISA is a great way to save in a tax-free manner, as you don’t need to pay any Income or Capital Gains Tax on the return.

Our investment aim is to generate a steady growth over five years or more, meaning your savings could start to add up, helping your financial dreams come true sooner rather than later.

Why choose a Stocks & Shares ISA?

Ideal for medium to long term savings. It’s designed for people looking to save something for their future.

Available to all UK residents aged 18 to 80.

You can save up to £20,000 in the 2019/2020 tax year.

Make regular payments from just £50 per month, lump sums of at least £500 and top ups of at least £250.

Your money is invested in our top performing With Profits fund and has the potential to grow thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Access to Foresters Extras – membership benefits – including discretionary grants to help you to cover the cost of things like higher education and healthcare costs.

Kate, Northumberland

“I’m currently in my fifth year of studying on the Legal Practice Course at the University of Law. The Educational Award Fund grant enabled me to attend a work experience placement, which in turn helped with the application for my current job. It also meant that I was able to purchase study books without having to worry about the cost…”

Read More

A real-life example

A £1,000 ISA taken out on 1st November 2008 and surrendered on 1st November 2018 received a pay out of £1,713.23, on the basis of no earlier withdrawals being taken. This is total growth, after charges, of 71.3% or 5.5% per annum.

Past performance should not be seen as a reliable indicator of future results and the addition of annual and final bonuses is not guaranteed.

  • The final bonus rate is based on the year the money was invested into the plan and can change at any time.
  • The above graph is provided for information purposes. The potential for future bonuses depends on the performance of the Order Insurance Fund and how we distribute any profit.

Ready to make the most of your ISA allowance? Apply today!

Added value for you – Foresters Extras

Taking out a Stocks & Shares ISA is only the start. By doing so, you’re part of the Foresters Friendly family and can enjoy some wonderful, unique benefits such as discretionary grants to help with dental and optical costs.

Find out more

Common questions

Can I hold more than one ISA?

In any one tax year you can open a Cash ISA and a Stocks & Shares ISA, in addition to a Lifetime ISA if you are eligible. But you have to make sure that the combined annual contributions do not exceed the annual ISA allowance. You can also hold ISAs from previous years, it is only the contributions you make to your ISA in the current tax year which counts towards this year’s annual ISA allowance.

Please note that tax rules may change and depend on individual circumstances.

What is the difference between a Cash ISA and Stocks & Shares ISA?

Good question. Well, Cash ISAs are savings accounts that pay interest that is free of income tax. Unlike Stocks & Shares ISAs the value of your capital cannot rise and fall. They are available to anyone aged 16 and over, and come in two types:

  • Instant Access. This is where you have direct access to your money and can make withdrawals whenever you want to for any reason.
  • Fixed Rate. This is when you aim to lock away your money for a set period of time to potentially benefit from a better rate of interest.

A Stocks & Shares ISA, like the one offered by us, is intended to be a longer-term investment and is available to anyone aged 18 years old and over. There is the potential for a greater return on your savings over the longer term than with a Cash ISA due to the differing investment approach although, depending on the performance of the stock market and any other asset types your money may be invested in, the value of your investments can fall as well as rise and you may not get back the full amount originally invested in a Stocks & Shares ISA.

Can I make withdrawals?

If you need access to your money, regular and one-off withdrawals can be made as long as the remaining balance of your ISA does not fall below £500. Regular withdrawals at fixed points in time i.e. monthly or quarterly can be made after two years, and one off withdrawals can be made at any time.

For further information on the terms of withdrawals please take a few minutes to read the Important Information document.

Can I transfer an existing ISA?

Yes, you can transfer an existing ISA into our Stocks & Shares ISA and then continue to save for your future with Foresters Friendly Society.

Transferring an existing ISA is simple. All you need to do is download and complete this transfer application form, then send this to us and we will contact your existing ISA provider to start the transfer process. You won’t need to do any more than that and we will contact you when the ISA transfer is finished.

If you would like to discuss transferring to Foresters Friendly Society in more detail, either call our friendly UK-based team on 0800 988 2418 or email us at memberservices@forestersfriendlysociety.co.uk and we will be happy to answer any questions you may have.

Where is the money invested?

The money you pay into the Stocks & Shares ISA is invested in Foresters Friendly Society’s Order Insurance Fund with the aim of providing investment growth. Dependent on the performance of our fund, we aim to add annual bonuses and a final bonus to your ISA which will increase your plan’s value. The addition of bonuses is not guaranteed.

Within our fund, your money is spread across a number of different types of investments including property, equities, cash and UK government bonds, to help minimise risk and increase the potential returns. You won’t have to make any investment choices, our expert fund managers manage the fund on your behalf.

Please see the Principles and Practices of Financial Management (PPFM) for the latest information on our investment strategy.

What interest does the plan pay?

The Stocks & Shares ISA doesn’t pay interest. Instead, by investing the money you pay into the plan into our Order Insurance Fund, which is a with profits fund, we provide your plan with the potential for growth by way of bonuses. Any profits generated by the fund are used to add an annual bonus to your ISA and possibly a final bonus when you withdraw your money.

We have paid annual bonuses on our Stocks & Shares ISA for the past 15 years.

  • In 2018 the annual bonus rate was 1.75%.

The annual bonus is applied to the amounts you have invested, less the amounts you have withdrawn, and any annual bonuses that have been previously added.

The addition of any bonus is not guaranteed and you may not get back the full amount originally invested, dependent on the investment conditions at withdrawal.

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 rate is provided for information purposes only and should not be considered an indication of likely future performance.

Are there any charges?

There is an Annual Management Charge which is initially set at 2% of the value of your ISA. We deduct charges upfront before we declare bonuses. This means there are no additional charges for you to pay. This charge could increase, but we promise it will never exceed 3% of the value of your ISA in any one year. The charges are designed to cover our costs for administering the ISA on your behalf. For more information about charges, please take a few minutes to read the relevant Stocks & Shares ISA Key Information Document (lump sum or monthly) and Important Information.

What happens if I cash-in my ISA?

Being a with profits investment, your ISA will benefit from the potential for growth the longer it is kept invested. Ideally for a minimum of 5 years but the longer the better. However, you can cash-in your investment whenever you want. The cash-in value will depend on the amount invested, the amounts that have been withdrawn and any annual bonuses that have been added. Depending on the investment returns achieved and our costs, in good investment conditions we may also add a final bonus. However, in not-so-good investment conditions, we may apply a Market Value Reduction (MVR) which will reduce the plan’s value and may mean you get back less than was paid in.

For more details please take a few minutes to read the Important Information document.

What if I change my mind?

If you change your mind and wish to close your ISA within the 30 day cancellation period, you can just complete the cancellation form and return it to us.

You can cash-in your ISA whenever you choose after the 30 day cancellation period has passed. But due to the nature of the investment, you may find you get back less than you have paid in.

For more information please see the Important Information document.

I’m not sure if an ISA is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser. Of course, you may have to pay for this advice.

Ready to get started? APPLY ONLINE

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418

Child Tax Exempt Savings Plan

A helping hand

For your children

It’s hard to imagine our children being fully grown adults. When the little ones become big ones. It seems like such a long way away, doesn’t it? But it’ll be here before we know it. Our Child Tax Exempt Savings Plan is a great way for you to give them some financial support for the adult years ahead.

A

tax-free

sum for your
child

Potential

bonuses

to grow their savings

Pay in

£25

a month

Save from

10 to 25

years

This affordable plan offers a guaranteed tax-free cash sum when they need help the most. Imagine helping them buy their first car, paying towards university fees, or even helping with a deposit on a property. What a wonderful feeling to play such an important part in their lives.

Why choose the Child Tax Exempt Savings Plan?

Affordable saving for your child’s future at just £25 a month.

Available for children aged 0 to 15. But don’t worry if you have a child over 16. We offer an adult Tax Exempt Savings Plan as well.

Can be held alongside a Junior ISA or Child Trust Fund.

The money you save is invested in our top performing With Profits fund and has the potential to grow thanks to the addition of annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Choose how long you want to save for from 10 to 25 years. You can even select the exact day – we find birthdays are very popular! Your child must be at least 16 years old to receive the cash sum.

As a Foresters member your child or grandchild has access to Foresters Extras which includes discretionary grants to help cover the cost of things like higher education and healthcare costs.

Laura about her daughter Ruby

“I chose the Foresters Friendly Society Child Tax Exempt Savings Plan for my daughter, Ruby, because it’s an affordable amount to save for her each month with excellent member benefits in addition to the policy. Ruby has been a policyholder for 7 years now and I took the Child Tax Exempt Savings Plan out on her behalf shortly after joining the Foresters Member Services department. I love the fact that I was able to choose how long I wanted to save for. I’ve chosen her 21st birthday as the date she will receive the cash from the policy, so that I am able to give her a special gift on this special day. I think the most attractive member benefit for us in the future will be the educational award, which could help her when she goes in to further education.”

Read more

A real-life example

A £25 per month Child Tax Exempt Savings Plan which commenced in November 2008 with a 10 year term provided a payout of £3,438.78 at maturity. This is an average annual return of 2.7% and a total return of 14.6%, after charges.

Past performance should not be seen as a reliable indicator of future results and the addition of annual and final bonuses is not guaranteed.

  • Following a re-price, all TESPs taken out from 1st January 2018 will have a guarantee of 91% of contributions. This change to the guaranteed amount does not impact future investment performance of your child’s plan, but does mean the amount your child receives at the end of the plan could be lower than the contributions made.
  • The final bonus rate is based on the year that the policy commenced and can change at any time.
  • The above graph is provided for information purposes. The potential for future bonuses depends on the performance of the Order Insurance Fund and how we distribute any profit.

Ready to start saving for your child’s future? Apply today!

Added value for your child – Foresters Extras

Taking out a Child Tax Exempt Savings Plan means your child is part of the Foresters Friendly Family, and can enjoy some wonderful, unique benefits including discretionary grants to help with the cost of higher education and to support life’s ups or downs.

Find out more

FAQs

Who can open a Child Tax Exempt Savings Plan?

Anyone can open a Child Tax Exempt Savings Plan. If you are not the child’s parent or guardian, we’ll ask you to confirm that they agree to you setting up the plan. We will then send the plan documents to them so you will need to provide their details as part of the application process.

If the person paying into the plan isn’t the parent or guardian, they’ll receive a copy of the Direct Debit agreement to show they are paying the contributions. They’ll also receive the right to cancel pack in the first 30 days.

Can I open more than one Child Tax Exempt Savings Plan for my child?

In a word, no. You see, under current legislation each person (including children) can save up to a maximum of £25 a month in a Friendly Society tax free regular savings plan. And because monthly contributions for this plan are fixed at £25, you can’t hold more than one plan.

However, any contributions above these limits can be invested in our other savings plans.

What is the guarantee?

Good question. As long as you keep paying in the monthly contributions for the full term, your child is guaranteed a minimum cash lump sum at the end of the term of 91% of the contributions paid.

And, whilst not guaranteed, there’s the potential for bonuses to increase the amount your child receives. Once added to their plan, a bonus cannot be taken away and will become part of the guaranteed value, subject to all monthly contributions being paid. That’s not a bad start to adulthood!

As further protection for you, we’re covered by the Financial Services Compensation Scheme. This means that 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 Scheme.

Are there any charges?

As with any investment, there are costs in running the fund. These include the costs of buying and selling assets. We deduct charges upfront before we declare bonuses. So there are no additional charges for you to pay. For more information about charges, see the Child Tax Exempt Savings Plan Key Information Document and Important Information.

Where is the money invested?

All the money you pay into the Child Tax Exempt Savings Plan is invested in Foresters Friendly Society’s top performing with profits Order Insurance Fund. To keep the risk down, we spread all the money paid into our fund across a number of different types of assets. These may include stocks & shares, property, government bonds and cash. If the return from any one particular asset type is poor, the fund may be protected from the full impact of this fall as other assets may perform better.

Please see the Principles and Practices of Financial Management (PPFM) for the latest information on our investment strategy.

What interest does the plan pay?

The Child Tax Exempt Savings Plan doesn’t pay interest. Instead, by investing the money you pay into the plan into our with profits Order Insurance Fund we provide the potential for growth by way of bonuses. The better the fund does, the higher the bonuses you could potentially receive. Any profits generated by our fund are used to add an annual bonus to your child’s guaranteed sum and possibly a final bonus when the plan reaches the end of its term.

Since 2010 the following annual bonus rates have been declared for the Child Tax Exempt Savings Plan:

  • 0.25% of the guaranteed maturity amount and 0.75% of previous bonuses

The guaranteed maturity amount is 91% of the total amount you will pay into the plan when it reaches maturity and is the guaranteed minimum amount you will receive. This is subject to you paying all your monthly contributions into the plan for its full term.

For example if you are saving £25 for 18 years, the guaranteed maturity amount for your plan is £4,914. So each year, if a bonus is declared it will be calculated on the total £4,914 instead of your total contributions for that year (£300).

Additionally, if your plan has had a total of £70 in bonuses declared previously, for example, this amount may receive a bonus too which all adds to the total value of the plan.

The addition of any bonuses is not guaranteed. 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.

Can withdrawals be made from the plan?

No, we’re afraid not. Child Tax Exempt Savings Plans like this one are a fixed term regular saving plan so withdrawals are not possible until the plan matures. It’s all about playing the long game.

What happens if I stop paying?

We’d urge you to keep up payments. But if you have to stop during the first year, the plan will lapse with no value and we’re afraid we won’t be able to refund your money. After the first year, if the plan is cashed in or you stop making payments, the child may get back less than you have paid in. Any payouts made due to the surrender or cashing in of this plan will be paid to the child, as this plan is for their benefit.

What happens if either myself, or the child, passes away during the plan’s term?

If the child passes away, a refund of contributions paid to date will be payable to their estate.

If you pass away while paying contributions on behalf of a child, someone else may continue to pay the contributions so the plan can continue to its maturity date. If there is no one to continue paying into the plan, the guaranteed maturity amount will be reduced and will remain invested until the maturity date when the plan’s value will be paid to the child. During this time, the plan will continue to benefit from any annual bonuses which will be paid on the reduced guaranteed maturity amount.

What happens when my child’s plan reaches maturity?

We’ll send the child a maturity information pack a little while before the plan is due to mature. This will advise how much the cash lump sum payment will be, and will detail the information we’ll require so we can transfer the money to them. If the maturity date is set for the child’s 16th birthday, the maturity information pack will be sent to the parent/guardian.

When the plan matures all of the money saved and all bonuses will be paid directly to your child. So that we can do this, your child will need a bank account set up in their name.

I’m not sure if the Child Tax Exempt Savings Plan is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser. Of course, you may have to pay for this advice.

Ready to get started? APPLY ONLINE

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418

Lifetime ISA

Boost your savings with a

25% government bonus

Looking to either buy your first home or save for your retirement? Then take a look at our Lifetime ISA (also known as a LISA). It’s a little different to other ISAs because the government gives you a very healthy 25% monthly bonus on whatever you’ve saved. The question is, why wouldn’t you open one today!

25%

government bonus on your savings

Potential for

bonuses

from Foresters too

Available for

18-39

year olds

Save up to

£4,000

a year

It’s harder than ever to get onto the property ladder. And when it comes to saving for the future, well, it’s good to have all the help we can get. The Lifetime ISA is designed to help people buy their first home, or to build additional savings for their retirement. And, so your pot grows as quickly as possible, the government will add a monthly 25% bonus to your savings, up to a maximum of £1,000 per year.

Why choose the Lifetime ISA?

The Lifetime ISA is designed for people saving for their first home or retirement for the medium to long term.

Available to all UK residents aged 18 to 39. Whilst you can’t take out a joint Lifetime ISA, your partner can also take one out.

Your Lifetime ISA will receive a 25% government bonus, up to £1,000 each tax year.

Save up to £4,000 each tax year. Save regularly from £100 per month (or £50 if you are an existing Foresters member or child/grandchild of a member) or invest a lump sum of at least £500. Top ups of £250 or more can be made thereafter.

Your money is invested in our top performing With Profits fund which means you may also benefit from additional annual and final bonuses from Foresters. (Source: Barnett Waddingham Dec 2018)

Access to Foresters Extras – membership benefits – including discretionary grants to help you to cover the cost of things like higher education and healthcare costs.

James, Harpenden

“The Educational Awards Fund grants have supported me throughout my first degree in Sport and Exercise Science and will now continue to support me as I start a second degree to fulfil my dream to become a Physiotherapist. The medical books needed for physiotherapy are very expensive, so this grant is a big help.”

READ MORE

Common questions

What is a Lifetime Individual Savings Account (Lifetime ISA/LISA)?

Fancy getting on the property ladder? Or looking to save for your retirement? A Lifetime ISA could help. It’s a savings account that helps you to achieve your future plans, tax free. Whether that’s purchasing your first home with a value of less than £450,000. Or providing a cushion for when you’ve stopped work.

You can pay in up to £4,000 each tax year into a Cash LISA, or a Stocks & Shares LISA like the one offered by us (or split the allowance between both), and the government will add a 25% bonus on the money paid into the LISA by you each month. A very welcome bonus!

We aim to add an annual bonus each year too, plus a possible final bonus when you withdraw your money. The addition of Foresters bonuses is not guaranteed.

You can open a LISA if you’re aged 18 to 39 and a UK resident for tax purposes. Tax rules may change and depend on individual circumstances.

How long can I save in a Lifetime ISA?

The LISA is designed for people saving for their first home or alternatively for later life or retirement when your savings can be accessed from age 60. Whilst you have to be under 40 to open a LISA, once open you can pay into the plan until you turn 50, with government bonuses being added. From age 50, no further contributions can be made.

Lifetime ISAs (LISAs) are best viewed as a medium to long-term investment. If you are planning to use your LISA for a deposit on your first home and are looking to buy a home in the next 3 years, then our LISA may not be right for you.

Because the Lifetime ISA is designed to be held for a number of years the rules and regulations covering their operation and tax status may change in the future. You won’t pay tax on your investment, but it’s worth remembering that tax is automatically deducted from share dividends and that tax cannot be reclaimed. These tax rules also depend on your individual circumstances.

How much can I pay into a Foresters Lifetime ISA?

To open a Foresters LISA, you can choose to contribute regular amounts from £100 per month by Direct Debit (or from £50 per month if you are an existing Foresters member, or child/grandchild of a member), or invest a lump sum of at least £500. You are then able to invest lump sums of a minimum of £250 as top ups. Or if you prefer, you can use a combination of both, as long as your total contribution is not more than £4,000 per tax year. As LISAs are designed to be held for a number of years, the limit on annual contributions may change in the future.

Even your parents or grandparents can help

We know how hard it can be to save for big things like a first home or retirement, so if your parents or grandparents want to help you, this will enable you to reach your savings goal quicker. While they are not allowed to invest directly, they can pass the money to you to put into your LISA.

Can I transfer a Help to Buy ISA or other savings into a Lifetime ISA?

Yes, if you have other savings or ISAs that are not performing as well as you would like, you could consider moving that money into your LISA. If you’ve already started saving for your first home in a Help To Buy ISA, you can transfer that into a LISA during the 2019/2020 tax year, and receive the 25% government bonus on those funds too. Any transfer from a Help To Buy ISA will however count towards your annual £4,000 limit. Before you do this, it’s important that you ask your existing providers if there will be any penalties or loss of interest from your existing savings or ISAs so that you can make an informed decision.

Transferring an existing ISA is simple. All you need to do is download and complete this transfer application form, then send this to us and we will contact your existing ISA provider to start the transfer process.

Can I open a joint Lifetime ISA with my partner?

Although you can’t take out a joint LISA, your partner can also take one out, so you can both benefit from the tax advantages, government bonus and growth potential from Foresters. Both you and your partner can each contribute a maximum of £4,000 to a LISA. In addition to this, for the 2019/2020 tax-year you can also each contribute £16,000 in a normal Cash ISA or into a Stocks & Shares ISA like the one we offer.

How does the process of paying towards a first home work?

When you’re buying your first home, we don’t pass the proceeds on to you. Instead, they go directly to the solicitor or licensed conveyancer who is acting on your behalf. If, for some reason, the purchase of the property doesn’t complete, the solicitor will return the money to us. We’ll then reinvest it back in to your plan at no loss to yourself.

Where is the money invested?

The money you pay into your Stocks & Shares LISA, together with the government bonus, is invested in our top performing With Profits Order Insurance Fund, which aims to provide growth over the medium to long term. Annual bonuses and a possible final bonus may be added to your LISA by Foresters. The value of these bonuses depends on how much profit our fund makes and this cannot be predicted.

We have declared the following annual bonus rates for our Lifetime ISA, which are paid in addition to your 25% government bonus:

YearAnnual Bonus Rates
20181.75%
20171.75%

The annual bonus is applied to the amount invested (minus any withdrawals you may have made to your Lifetime ISA) plus any previous bonuses that have been added.

The addition of any bonus is not guaranteed and you may not get back the full amount originally invested, dependent on the investment conditions at withdrawal. Inflation will affect what you can buy when you cash-in your LISA.

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.

How are government bonuses paid?

The 25% government bonus your Lifetime ISA receives is based on the contributions that you make in any one tax year and is paid on a monthly basis. So, if you pay in £200 a month, your plan will receive a government bonus of £50 that month too. We will liaise with the HMRC to ensure that your Lifetime ISA receives the government bonus – you don’t need to do a thing.

Are there any charges for the Lifetime ISA?

There’s an annual management charge. This is initially set at 1.25% of the value of your Foresters Lifetime ISA, which will be taken into account when calculating policy bonuses. This may change but we promise it will never exceed 3% of the value of your Stocks & Shares LISA in any one year. These charges cover our costs for managing the LISA for you. For more information about charges, please see the Lifetime ISA (LISA) Key Information Document (monthly contribution), Key Information Document (lump sum payment) and Important Information.

What happens if I want to cash-in my LISA and it’s not to buy a home or for retirement?

The LISA is designed for people saving for their first home or later life and retirement from age 60. So you should only plan to use the funds for those purposes. You are still able to cash it in for other reasons, but in most cases this would incur a 25% government charge, applied to the whole amount of your withdrawal.

This charge returns the government bonus to them, including the growth or other bonuses received on that money, plus a small penalty for the withdrawal. If you do wish to make withdrawals, then it’s important to read the Lifetime ISA Important Information for further details.

I’m not sure if a Lifetime ISA is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser. Of course, you may have to pay for this advice.

Added value for you – Foresters Extras

Taking out a Lifetime ISA is only the start. By doing so, you’ll be a part of the Foresters Friendly family and can enjoy some wonderful, unique benefits including discretionary grants to help you cover the cost of things like higher education, dental and optical costs.

Find out more

Ready to get started? APPLY ONLINE

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418

Junior ISA

An ISA for

The next generation

For any parent, knowing your child has a secure future is absolutely priceless. Our Junior ISA (JISA) can help to put some solid building blocks in place so that your little ones can grow and flourish. When they turn 18 they will have a savings pot they can put towards the next step in their life.

Simple

child savings

plan

Save up to

£4,368

Open from just

£10

Potential growth
thanks to

bonuses

We all dream about giving our children the best start in life – and that includes financially. It’s a great feeling knowing that they have savings growing as they do. Our Junior ISA gives you the chance to invest simply in their future. The plan must be opened by the child’s parent or guardian, but anyone can set up the Direct Debit or add lumps sums. Children aged 16 and 17 can open a JISA themselves.

Why choose the Junior ISA?

It is a simple and affordable way to build up a savings pot for your child for when they reach 18.

Available for children aged 0 – 18. Children aged 16 and 17 can open a JISA themselves.

You can save up to £4,368 this tax year by saving regularly from £10 per month, investing a lump sum of £500 and making top ups of at least £250.

Once opened friends and family can pay in too.

Your money is invested in our top performing With Profits fund and has the potential to grow thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Access to Foresters Extras – membership benefits – including discretionary grants to help you to cover the cost of things like higher education and healthcare costs.

Lara, Nottingham

“I applied for the Educational Award as my father had done 25 years ago. The grant has helped support my A-Level studies by enabling me to buy text books and stationery.

Thanks to the continued support of Foresters Friendly Society, I’m confident that I will be able to achieve the grades I need to achieve my goal of going to university.”

Read More

Common questions

Who can open a Junior ISA (JISA)?

A Junior ISA must be opened by the child’s parent, guardian or person with parental responsibility, but anyone can set up a Direct Debit or add lumps sums.

The parent or guardian will manage the account until the child is 16, when they’ll take control of it, but you, or other family and friends, can continue to contribute. The child will be able to access the money paid into the Junior ISA and any annual bonuses that have been added once they are 18. No one else can access the savings.

Children aged 16 and 17 can open a JISA themselves.

How many Junior ISAs can I open?

Your child can have a Junior Cash ISA, a Junior Stocks and Shares ISA or both. If they hold both, the combined total which can be saved this year must still be within the annual Junior ISA allowance.

Unlike Adult ISAs where it’s possible to have multiple ISA accounts from different tax years, your child can only hold one cash Junior ISA and one stocks and shares Junior ISA. So if your child already has a stocks and shares Junior ISA with £5,000 saved into it and you want to open a Foresters stocks and shares Junior ISA, you will need to transfer the £5,000 into our Junior ISA.

Our Junior ISA is categorised as a Stocks and Shares JISA and transfers from other Junior ISAs will be managed on your behalf, making the process as easy as possible for you. All you need to do is complete a simple form.

Can a Junior ISA be held alongside a Child Trust Fund (CTF)?

If the child already has a Child Trust Fund (CTF), they can’t hold both products, but the CTF can be transferred into the Junior ISA, as can another Junior ISA held with another provider. To transfer a CTF or Junior ISA into our Junior ISA, simply download a Transfer Form and submit your application by post.

Are there any charges?

There is an Annual Management Charge which is initially set at 1.9% of the value of your Junior ISA. We deduct charges upfront before we declare bonuses. This means there are no additional charges for you to pay. This charge could change, but we promise it will never exceed 3% of the value of your Junior ISA in any one year. The charges are designed to cover our costs for administering the JISA on your behalf. For more information about charges, please take a few minutes to read the relevant Junior ISA Key Information Document (lump sum investment or monthly contribution) and Important Information.

Where is my money invested?

Your money is invested in our top performing with profits Order Insurance Fund with the aim of providing investment growth. Dependent on the performance of our fund, we aim to add annual bonuses and a final bonus to your child’s Junior ISA which will increase their plan’s value. The addition of bonuses is not guaranteed.

We never forget it’s your child’s money, so we take extra good care of it. Within our fund, your money is spread across a number of different types of investments to help minimise risk and increase the potential returns. This way your money benefits from exposure to a range of asset classes which may include equities (company shares), fixed interest bonds (government and company), property and cash.

What interest does the Junior ISA plan pay?

The Foresters Stocks & Shares Junior ISA doesn’t pay interest. Instead, by investing the money you pay into the plan into our Order Insurance with profits Fund we provide the potential for growth through bonuses. What growth your child’s Junior ISA receives will depend on the performance of our fund.

The following annual bonus rates have been declared for the Junior ISA:

YearAnnual Bonus Rate
20181.75%

The annual bonus rate is applied to the amounts you have invested, less the amounts you have withdrawn, and any annual bonuses that have been previously added.

The addition of any bonus is not guaranteed and your child may not get back the full amount originally invested, dependent on the investment conditions at withdrawal.

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.

Can withdrawals be made from a JISA?

No – no one can access the funds legally before the child turns 18. In other words, the plan is locked.

What happens to the Junior ISA when the child turns 18?

Once your child turns 18 they’ll be able to access their Junior ISA. Their lump sum will either continue to be invested as an adult ISA, or the money can be used to further their plans. It could help them with university fees, saving towards a deposit on a house, or even buy their first car.

What happens if the person paying contributions passes away before the child reaches 18?

Anyone can pay into the Junior ISA so, in this case, another person can carry on with the payments.

What if I change my mind?

After your application is accepted you will receive a statutory notice of your right to cancel. You will then have 30 days from the commencement date of the Junior ISA, or the date the notice is received, whichever is later, in which to change your mind. Something often referred to as a cooling-off period.

For more information please see the Important Information document.

I’m not sure if a Junior ISA is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser.

Added value for your child – Foresters Extras

Taking out a Junior ISA means your child is part of the Foresters Friendly family, and can enjoy some wonderful, unique benefits including discretionary grants to help with higher education costs when the time comes and to support life’s ups and downs.

Find out more

Ready to get started? APPLY ONLINE

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418

Child Trust Fund Top Ups

A little boost

For your little
(or not so little) ones

Sometimes you might find yourselves with a little extra money that you want to add to your child’s Child Trust Fund. There are a number of easy ways to top up their plan.  What better way to make a difference to their tomorrow, today.

Pay in up to

£4,368

Top up from

£5

per month

Friends and
family can

top-up

too

Potential

bonuses

to grow their savings

If your child or grandchild has a Child Trust Fund with us, then you can top it up at any time. £20 here, £50 there. It’s the perfect place for that Christmas and Birthday money to potentially work harder for them.

A little thank you for a big decision

There’s more good news. Top up your Child Trust Fund with £500 or more and we’ll send you a free Junior Forrie Bear once the payment has been received.

Terms & conditions apply

Why top up their child trust fund?

You can pay in £4,368 in the 2019/2020 tax year.

Your money is invested in our top performing With Profits fund and has the potential to grow thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Make top ups from as little as £5 a month, or one off payments from £50.

Friends and family can top up too. It could be the perfect place for Birthday and Christmas money!

Sarah, Reading

“Thanks to the generosity of Foresters Friendly Society, I received an Educational Award grant, which allowed me to purchase literature for my course, together with assisting with my accommodation costs whilst at University. The grant has provided a financial benefit towards my continued ambition of becoming a primary school teacher.”

Read More

Common questions

Can I still open a Foresters Friendly Society Child Trust Fund?

Child Trust Funds are no longer available to open and were replaced by the Junior ISA. But on the plus side, we do offer other saving plans which can be used to save for your child’s future. They’re our Junior ISA and our Child Tax Exempt Savings Plan. It’s still possible to transfer an existing Child Trust Fund or Junior ISA into a Foresters Friendly Society Junior ISA, simply download a Transfer Form and submit your application by post. We will manage the transfer on your behalf.

Can I transfer an existing Child Trust Fund or Junior ISA to Foresters Friendly?

We no longer accept transfers into our Child Trust Fund. However, we provide a Junior ISA so it is possible to transfer an existing Child Trust Fund or Junior ISA into a Foresters Friendly Society Junior ISA, simply download a Transfer Form and submit your application by post. We will manage the transfer on your behalf.

What alternative saving plans to the Child Trust Fund do you have?

We provide a stocks and shares Junior ISA. This is pretty similar to a Child Trust Fund and you can pay in £4,368 over the 2019/2020 tax year. Then there’s the Child Tax Exempt Savings Plan, only available through Friendly Societies. This is a tax efficient savings plan that allows you to pay regular premiums of £25 a month into the plan for a fixed term. This means that you decide when you want the plan to mature for your child or grandchild (after the child’s 16th birthday and subject to a minimum term of 10 years).

Is there a limit on the amount of top ups I can make?

Yes. The maximum you can top up for the 2019/2020 tax year is £4,368.

If you want to pay in more than £4,368 per year, our Child Tax Exempt Savings Plan can be taken out as well as a Child Trust Fund to further maximise the child’s savings.

Can my child access the money in their Child Trust Fund before they reach 18?

No. The Child Trust Fund is designed to offer a financial head start when the child becomes an adult by providing a cash payment when they turn 18 years old. Only in exceptional circumstances can they get their hands on the money. There are further details within the plan conditions which you will have received when you opened the Child Trust Fund.  If you have misplaced these, please call us on 0800 988 2418 and we will answer any questions you may have.

Can I have access to the money?

No, the only person who can access the money in the Child Trust Fund is your child. And even then it’s locked away until they’re 18.

Do I have control over the money?

You control the Child Trust Fund until your child reaches 16. From 16 onwards, your child can control the Child Trust Fund if they wish to.

Where is the money invested?

The money you pay into the Child Trust Fund is invested in Foresters Friendly Society’s top performing with profits Order Insurance Fund, with the Ethical Child Trust Fund only being invested in the ethical section of our fund. We never forget it’s your child’s money, so we take extra good care of it. The money is spread across a number of different types of assets that may include property, UK government bonds, equities and cash. If the return from any one particular asset type is poor, the investment may be protected from the full impact of this fall as other assets may perform better.

What interest does the plan pay?

The Child Trust Fund does not pay interest. Instead, by investing the money you pay into the plan into our with profits Order Insurance Fund we provide the potential for growth by way of bonuses. The better the fund does, the higher the bonuses your child could potentially receive. Any profits generated by our fund are used to add an annual bonus and possibly a final bonus when the plan reaches the end of its term.

We have paid annual bonuses on our Child Trust Fund for the past 11 years.

  • In 2018 the annual bonus rate was 2%

The annual bonus is applied to the amount you have invested in your child’s Child Trust Fund to date plus any previous bonuses that have been added.

The addition of any bonus is not guaranteed. 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).

Added value for your child – Foresters Extras

With a Child Trust Fund your child is part of the Foresters Friendly Family, and can enjoy some wonderful, unique benefits including discretionary grants to help with the cost of higher education and to support life’s ups or downs.

Find out more

Three ways to top up your child trust fund

1

Online

Make a one-off, secure, payment from your debit card. Top up online now.

2

By phone

Call us on 0800 988 2418 and we can take a payment from your debit card over the phone.

3

By post

Download the Child Trust Fund Top Up Form and either complete the Direct Debit instruction, or attach a cheque for the lump sum contribution amount, then send it back to us and we will do the rest for you.

 

TOP UP ONLINE TODAY

Ready to get started?

TOP UP ONLINE TODAY

call 0800 988 2418

OR Download a top up form

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418

Inherited ISA Allowance Plan

A little comfort

After they’ve gone

No one can prepare you for the overwhelming sense of loss following the passing of your spouse or civil partner. And while your finances may understandably take a back seat, here at Foresters Friendly we try and make things a little easier for you. Our Inherited ISA Allowance Plan lets you invest the tax-free allowance left to you by your partner.

An additional

ISA allowance

Doesn’t affect your

ISA allowance

Potential growth
thanks to

bonuses

Make

withdrawals

if you need to

If your spouse or civil partner has passed away and they had an ISA, then you could be entitled to inherit their tax-free allowance up to the value of their savings on the date they passed away. Our Inherited ISA Allowance Plan lets you invest that amount.

Keith, Bedford

“By joining Foresters you’re not just becoming a member of the Society, you’re joining people who work in a positive way to reach out and help others in life.”

Read More

Why choose an Inherited ISA Allowance Plan?

Invest a spouse or civil partner’s ISA allowance up to the value of the savings they had on the date they passed away or the value of their ISA when it is closed.

Available to anyone aged 18 to 80. If you already hold a Foresters ISA, no maximum age limit will apply.

Your money is invested in our top performing With Profits fund and has the potential to grow thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Make regular payments from just £50 per month by Direct Debit or pay in a lump sum of at least £500 to open a plan. Top ups of at least £250 can then be made up to the inherited ISA allowance you receive.

This one off additional allowance doesn’t affect your own ISA allowance.

Access to Foresters Extras – membership benefits – including discretionary grants to help you to cover the cost of things like higher education and healthcare costs.

Added value for you – Foresters Extras

Taking out an Inherited ISA Allowance Plan is only the start. By doing so, you’re part of the Foresters Friendly Family and can enjoy some wonderful, unique benefits such as discretionary grants to help with dental and optical costs.

Find out more

A Real-life example

A £1,000 ISA taken out on 1st November 2008 and surrendered on 1st November 2018 received a pay out of £1,713.23, on the basis of no earlier withdrawals being taken. This is total growth, after charges, of 71.3% or 5.5% per annum.

Past performance should not be seen as a reliable indicator of future results and the addition of annual and final bonuses is not guaranteed.

  • The final bonus rate is based on the year the money was invested into the plan and can change at any time.
  • The above graph is provided for information purposes. The potential for future bonuses depends on the performance of the Order Insurance Fund and how we distribute any profit.

Ready to invest your inherited allowance? Request a pack today!

Common questions

Who can apply for an Inherited ISA Allowance Plan?

You can apply for an Inherited ISA Allowance Plan if:

  • You were living with your spouse or civil partner at the date they passed away and were not separated under a court order, deed of separation or in circumstances where the separation was likely to be permanent
  • They held an ISA at the date they passed away
  • They passed away on or after 3rd December 2014
  • You are aged between 18 and 80. If you already hold a Foresters ISA, no maximum age limit will apply.

Unlike normal ISAs you do not have to be resident in the UK for tax purposes to be eligible to apply for an Inherited ISA Allowance Plan. All we ask is that you hold a UK bank account so that you can make contributions into the plan.

There’s no need to inherit the money from your partner’s ISA to be eligible. You can use your own money to open the account and you don’t have to wait for the ISA to be closed.

How much will my inherited ISA allowance be?

If your spouse or civil partner has passed away and they had an ISA, your inherited ISA allowance would be as follows:

  • If your partner died on or before April 5 2018:

    Your inherited ISA allowance will be the value of your partner’s ISA(s) at the date of death.

 

  • If your partner died on or after April 6 2018, at the time of applying, you can either:

    1. inherit an ISA allowance that is the value of your partner’s ISA(s) at the date of deathOR

    2. if your partner’s ISA(s) remains open and continues to earn interest, you can inherit an ISA allowance that is the value of your partner’s ISA(s) at account closure. Your partner’s ISA(s) can remain open up to three years after the date of death.
What type of ISA investment is the Inherited ISA Allowance Plan?

Our Inherited ISA Allowance Plan is classified as a Stocks & Shares ISA, and can be held in addition to a standard cash and/or Stocks & Shares ISA in the same tax year. As the inherited ISA is a one off, additional allowance which surviving spouses and civil partners are entitled to, it does not affect your own ISA allowance.

Can I make withdrawals?

Regular and one-off withdrawals can be made from the inherited ISA, as long as the remaining balance does not fall below £500. Withdrawing money from your Inherited ISA Allowance Plan will reduce the value of your remaining investment. In good investment conditions, we may apply a final bonus at withdrawal which will increase the money you receive. In adverse investment conditions we may apply a Market Value Reduction (MVR) at withdrawal. At these times the plan value will be reduced by more than the amounts withdrawn. Conversely, if there is an entitlement to a final bonus, the plan value will be reduced by less than the amounts withdrawn.

For further information on the terms of withdrawals please take a few minutes to read the Important Information document.

Will you accept transfers from another provider?

Yes. We’ll accept transfers from other providers as long as they meet the conditions of the plan. If you transfer before you have used all your inherited allowance we will only be able to accept the transfer amount and no additional contributions can be added unless made to and transferred from the previous provider.

Where is the money invested?

The money you pay into the Inherited ISA Allowance Plan is invested in Foresters Friendly Society’s top performing Order Insurance Fund with the aim of providing investment growth. Dependent on the performance of our fund, we aim to add annual bonuses and a final bonus which will increase your plan’s value. The addition of bonuses is not guaranteed.

Within our fund, your money is spread across a number of different types of investments including property, equities, cash and UK government bonds, to help minimise risk so you can benefit from the exposure to a range of asset classes and increase the potential returns. You won’t have to make any investment choices, our expert fund managers manage the fund on your behalf.

Please spend a few minutes to read the Principles and Practices of Financial Management (PPFM) for the latest information on our investment strategy.

What interest does the plan pay?

The Inherited ISA Allowance Plan doesn’t pay interest. Instead, by investing the money you pay into the plan into our Order Insurance Fund, which is a with profits fund, we provide your plan with the potential for growth by way of bonuses. Any profits generated by the fund are used to add an annual bonus to your ISA and possibly a final bonus when you withdraw your money.

The Foresters Inherited ISA Allowance Plan is classified as a Stock & Shares ISA. We have paid annual bonuses on our Stocks & Shares ISA for the past 15 years.

  • In 2018 the annual bonus rate was 1.75%.

The annual bonus is applied to the amount invested (minus any withdrawals you may have made to your Inherited ISA Allowance Plan) plus any previous bonuses that have been added.

The addition of any bonus is not guaranteed and you may not get back the full amount originally invested, dependent on the investment conditions at withdrawal.

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.

Are there any charges?

There is an Annual Management Charge which is initially set at 2% of the value of your ISA. We deduct charges upfront before we declare bonuses. This means there are no additional charges for you to pay. This charge could increase, but we promise it will never exceed 3% of the value of your ISA in any one year. The charges are designed to cover our costs for administering the ISA on your behalf. For more information about charges, please take a few minutes to read the Inherited ISA Allowance Plan Key Information Document and Important Information.

What happens if I cash-in my Inherited ISA?

Being a with profits investment, your Inherited ISA will benefit from growth the longer it is kept invested. Ideally for a minimum of 5 years but the longer the better. However, you can cash-in your investment whenever you want. The cash-in value will depend on the amount invested, the amounts that have been withdrawn and any annual bonuses that have been added. Depending on the investment returns achieved and our costs, in good investment conditions we may also add a final bonus. However, in not-so-good investment conditions, we may apply a Market Value Reduction (MVR) which will reduce the plan’s value and may mean you get back less than was paid in.

If you close or transfer your Inherited ISA Allowance Plan before you fully use your inherited ISA allowance, you may only use the remaining allowance with Foresters Friendly Society.

For more details please take a few minutes to read the Important Information document.

What happens if I pass away?

The death benefit provided by your Inherited ISA will be paid to your estate and will depend upon the amounts invested, the amounts you have withdrawn and any annual bonuses that have been added. Depending on the investment returns that have been achieved and our costs, in good investment conditions we may add a final bonus to the plan’s value. In not-so-good investment conditions, we may apply a Market Value Reduction (MVR) which will reduce the plan’s value and may mean that your estate could get back less than you have paid in. In more favourable investment conditions the amount payable could be greater than you have paid in. The amount payable may be subject to Inheritance Tax depending on the size of your estate.

I’m not sure if an Inherited ISA Allowance Plan is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser. You may have to pay for this advice.

Ready to get started? request a PACK

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418

Investment Bond

A lump sum investment with the

Potential to grow

If you have a lump sum that you think could work harder, our Investment Bond could be for you. It aims to make the most of your money, offering the potential for long-term growth over five years or more. And all free from basic rate income tax or capital gains tax. The future could look pretty rosy.

Invest from

£5,000-
£150,000

Potential for

bonuses

on your investment

Open in

single or joint

names

Invest for

5+ years

Saving for your future, be it a rainy day, a big anniversary celebration or your retirement, needn’t be complicated. Our Bond can be taken out in joint names, which is ideal for couples wishing to invest. And, with our expert fund managers looking after your investment and the ability to withdraw up to 5% each year tax-free, what is there not to like?

A little thank you for a big decision

There’s more good news. Invest a lump sum of £5,000+ in an Investment Bond online and we’ll send you up to a £70 M&S Gift Card once your money has remained invested for 3 months.

£40 M&S Gift Card for a lump sum investment of £5,000-£9,999
£50 M&S Gift Card for a lump sum investment of £10,000-£14,999
£60 M&S Gift Card for a lump sum investment of £15,000-£19,999
£70 M&S Gift Card for a lump sum investment of £20,000+

Terms & conditions apply

Why choose our Investment Bond?

A great way to invest a lump sum of £5,000 – £150,000 with the potential for growth over five years or more.

Available to all UK residents aged 18 to 80.

Your money is invested in our top performing With Profits fund and has the potential to grow thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Access to Foresters Extras – membership benefits – including discretionary grants to help you to cover the cost of things like higher education and healthcare costs.

You can apply in joint names – perfect for couples.

You can make withdrawals from your Bond, ideal if you need to access your money (subject to conditions).

Deborah, Hampshire

“The Educational Award grant has been a great help in covering some of the costs associated with completing my HND in Art and Design…

I’m very grateful to Foresters Friendly Society for providing this financial assistance and would encourage anyone to join, not just because of the support offered to members, but also the opportunity to join in with some fantastic social events.”

Read More

A real-life example

A £10,000 Investment Bond taken out on 1st November 2008 and surrendered on 1st November 2018 received a pay out of £17,123.95, on the basis of no earlier withdrawals being taken. This is total growth, after charges, of 71.2% or 5.5% per annum.

Past performance should not be seen as a reliable indicator of future results and the addition of annual and final bonuses is not guaranteed.

  • The final bonus rate is based on the year the money was invested into the plan and can change at any time.
  • The above graph is provided for information purposes. The potential for future bonuses depends on the performance of the Order Insurance Fund and how we distribute any profit.

Ready to invest a lump sum? Apply today!

Added value for you – Foresters Extras

Taking out an Investment Bond is only the start. By doing so, you’re part of the Foresters Friendly Family and can enjoy some wonderful, unique benefits such as discretionary grants to help with dental and optical costs.

Find out more

Common questions

Can a Bond be taken out in joint names?

The Bond can either be opened in your name (single life) or both your name and another’s name (joint lives) which can be ideal for couples.

If the plan is taken on a joint names basis, both planholders are automatically treated as holding equal shares in the Investment Bond. If one planholder passes away, the other automatically becomes the sole planholder of the Investment Bond.

If an Investment Bond is set up in joint names this will be on a second death basis. That means that the death claim is not paid until the death of the second of the two lives and the Bond comes to an end at this stage.

We’ll send the annual statement and other correspondence to the first named planholder. If you would like to make any changes to your Investment Bond, the signature of the planholder or, in the case of joint life policies both the planholders, will be required. Just let us know and we’ll tell you what you need to do.

Can I make additional payments into the Investment Bond?

You can invest a single lump sum of between £5,000 and £150,000 into the Investment Bond. You cannot add to your lump sum Investment Bond once it’s in place, but if you want to invest more money, then you simply need to open another Bond.

Can I make withdrawals from my lump sum Bond investment?

Yes, you can make one-off withdrawals of at least £250 at any time, as long as the remaining balance of your Investment Bond does not fall below £500. You can also make regular monthly, quarterly, half yearly or annual withdrawals, of at least £50, as long as the value of your Bond remains over £5,000.

You need to remember that making withdrawals could reduce your Investment Bond to less than its initial value and could also have tax implications (please see the common question below for further details) .

For further information on the terms of withdrawals please take a few minutes to read the Important Information document.

What are the tax implications with an Investment Bond?

You can withdraw up to 5% each year of the amount you have paid into your Bond without paying any immediate tax on it. This allowance is cumulative so any unused part of the 5% limit can be carried forward to future years (although the total cannot be greater than 100% of the amount paid in).

However, if you decide to withdraw more than 5% per year and/or you cash in your entire Bond, we will calculate any gains on your money, and you may be subject to Income Tax. For higher or additional rate taxpayers this means that there may be an amount of tax to pay. Please note that tax rules may change and depend on individual circumstances.

For further information please read the Important Information document.

Can the Investment Bond be written in Trust?

Yes, that’s absolutely fine. You can place your Investment Bond in Trust. You may want to take advice from a solicitor before doing this.

Where is the money invested?

Your money is invested in our Order Insurance Fund with the aim of providing investment growth. Dependent on the performance of our fund, we aim to add annual bonuses and a final bonus to your Bond which will increase your plan’s value. The addition of bonuses is not guaranteed.

We never forget it’s your money, so we take extra good care of it. Within our fund, your money is spread across a number of different types of investments including property, equities, cash and UK government bonds, to help minimise risk and increase the potential returns. You won’t have to make any investment choices, our expert fund managers manage the fund on your behalf.

Please see the Principles and Practices of Financial Management (PPFM) for the latest information on our investment strategy.

What interest does the plan pay?

The Investment Bond doesn’t pay interest. Instead, by investing the money you pay into the plan into our Order Insurance Fund, which is a with profits fund, we provide your plan with the potential for growth by way of bonuses. Any profits generated by the fund are used to add an annual bonus to your Investment Bond and possibly a final bonus when you withdraw your money.

We have paid annual bonuses on our Investment Bond for the past 15 years.

  • In 2018 the annual bonus rate was 1.5%.

The annual bonus is applied to the amount invested (minus any withdrawals you may have made from your Bond) plus any previous bonuses that have been added.

The addition of any bonus is not guaranteed and you may not get back the full amount originally invested, dependent on the investment conditions at withdrawal.

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 planholders 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.

Are there any charges?

There is an Annual Management Charge which is initially set at 2% of the value of your Investment Bond. And because we don’t believe in hidden costs, we deduct charges upfront before we declare bonuses. This means there are no additional charges for you to pay. This charge could increase, but we promise it will never be more than 3% of the value of your Bond in any one year. The charges are designed to cover our costs for administering the Bond on your behalf.

For more information about charges, please see the Investment Bond Key Information Document and Important Information.

What happens if I cash-in the Investment Bond?

Being a with profits investment, your Investment Bond will benefit from growth the longer it is kept invested. Ideally for a minimum of 5 years but the longer the better. However, you can cash-in your Bond whenever you want. The cash-in value will depend on the amount invested, the amounts that have been withdrawn and any annual bonuses that have been added. Depending on the investment returns achieved and our costs, in good investment conditions we may also add a final bonus. However, in not-so-good investment conditions, we may apply a Market Value Reduction (MVR) which will reduce the plan’s value and may mean you get back less than was paid in.

For more details please take a few minutes to read the Important Information document.

I am not sure if an Investment Bond is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser.

Ready to get started? APPLY ONLINE

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418

Stocks & Shares ISA

An ISA with

More potential

Putting a little away for the medium to long term is always a good idea, especially if you have something special in mind for a birthday, your retirement or a rainy day. Our Stocks & Shares ISA has flexible saving options and offers potential growth thanks to the possibility of bonuses. Whatever you’re planning could be a reality sooner than you thought.

Potential growth
thanks to
bonuses

Save up to

£20,000

this tax year

Flexible

saving options

Transfers

accepted

We all have financial goals. Whether it’s something we’ve always wanted to do, or just a cushion for a little reassurance. Our Stocks & Shares ISA is a great way to save in a tax-free manner, as you don’t need to pay any Income or Capital Gains Tax on the return.

Our investment aim is to generate a steady growth over five years or more, meaning your savings could start to add up, helping your financial dreams come true sooner rather than later.

A little thank you for a big decision

There’s more good news. Take out a Stocks & Shares ISA online, or submit a transfer request, with a lump sum investment of at least £5,000 and we’ll send you an M&S Gift Card of up to £70 once your money has remained invested for 3 months.

£40 M&S Gift Card for a lump sum investment of £5,000-£9,999
£50 M&S Gift Card for a lump sum investment of £10,000-£14,999
£60 M&S Gift Card for a lump sum investment of £15,000-£19,999
£70 M&S Gift Card for a lump sum investment of £20,000

Terms & conditions apply

Why choose a Stocks & Shares ISA?

Ideal for medium to long term savings. It’s designed for people looking to save something for their future.

Available to all UK residents aged 18 to 80.

You can save up to £20,000 in the 2019/2020 tax year.

Make regular payments from just £50 per month, lump sums of at least £500 and top ups of at least £250.

Your money is invested in our top performing With Profits fund and has the potential to grow thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Access to Foresters Extras – membership benefits – including discretionary grants to help you to cover the cost of things like higher education and healthcare costs.

Kate, Northumberland

“I’m currently in my fifth year of studying on the Legal Practice Course at the University of Law. The Educational Award Fund grant enabled me to attend a work experience placement, which in turn helped with the application for my current job. It also meant that I was able to purchase study books without having to worry about the cost…”

Read More

A real-life example

A £1,000 ISA taken out on 1st November 2008 and surrendered on 1st November 2018 received a pay out of £1,713.23, on the basis of no earlier withdrawals being taken. This is total growth, after charges, of 71.3% or 5.5% per annum.

Past performance should not be seen as a reliable indicator of future results and the addition of annual and final bonuses is not guaranteed.

  • The final bonus rate is based on the year the money was invested into the plan and can change at any time.
  • The above graph is provided for information purposes. The potential for future bonuses depends on the performance of the Order Insurance Fund and how we distribute any profit.

Ready to make the most of your ISA allowance? Apply today!

Added value for you – Foresters Extras

Taking out a Stocks & Shares ISA is only the start. By doing so, you’re part of the Foresters Friendly family and can enjoy some wonderful, unique benefits such as discretionary grants to help with dental and optical costs.

Find out more

Common questions

Can I hold more than one ISA?

In any one tax year you can open a Cash ISA and a Stocks & Shares ISA, in addition to a Lifetime ISA if you are eligible. But you have to make sure that the combined annual contributions do not exceed the annual ISA allowance. You can also hold ISAs from previous years, it is only the contributions you make to your ISA in the current tax year which counts towards this year’s annual ISA allowance.

Please note that tax rules may change and depend on individual circumstances.

What is the difference between a Cash ISA and Stocks & Shares ISA?

Good question. Well, Cash ISAs are savings accounts that pay interest that is free of income tax. Unlike Stocks & Shares ISAs the value of your capital cannot rise and fall. They are available to anyone aged 16 and over, and come in two types:

  • Instant Access. This is where you have direct access to your money and can make withdrawals whenever you want to for any reason.
  • Fixed Rate. This is when you aim to lock away your money for a set period of time to potentially benefit from a better rate of interest.

A Stocks & Shares ISA, like the one offered by us, is intended to be a longer-term investment and is available to anyone aged 18 years old and over. There is the potential for a greater return on your savings over the longer term than with a Cash ISA due to the differing investment approach although, depending on the performance of the stock market and any other asset types your money may be invested in, the value of your investments can fall as well as rise and you may not get back the full amount originally invested in a Stocks & Shares ISA.

Can I make withdrawals?

If you need access to your money, regular and one-off withdrawals can be made as long as the remaining balance of your ISA does not fall below £500. Regular withdrawals at fixed points in time i.e. monthly or quarterly can be made after two years, and one off withdrawals can be made at any time.

For further information on the terms of withdrawals please take a few minutes to read the Important Information document.

Can I transfer an existing ISA?

Yes, you can transfer an existing ISA into our Stocks & Shares ISA and then continue to save for your future with Foresters Friendly Society.

Transferring an existing ISA is simple. All you need to do is download and complete this transfer application form, then send this to us and we will contact your existing ISA provider to start the transfer process. You won’t need to do any more than that and we will contact you when the ISA transfer is finished.

If you would like to discuss transferring to Foresters Friendly Society in more detail, either call our friendly UK-based team on 0800 988 2418 or email us at memberservices@forestersfriendlysociety.co.uk and we will be happy to answer any questions you may have.

Where is the money invested?

The money you pay into the Stocks & Shares ISA is invested in Foresters Friendly Society’s Order Insurance Fund with the aim of providing investment growth. Dependent on the performance of our fund, we aim to add annual bonuses and a final bonus to your ISA which will increase your plan’s value. The addition of bonuses is not guaranteed.

Within our fund, your money is spread across a number of different types of investments including property, equities, cash and UK government bonds, to help minimise risk and increase the potential returns. You won’t have to make any investment choices, our expert fund managers manage the fund on your behalf.

Please see the Principles and Practices of Financial Management (PPFM) for the latest information on our investment strategy.

What interest does the plan pay?

The Stocks & Shares ISA doesn’t pay interest. Instead, by investing the money you pay into the plan into our Order Insurance Fund, which is a with profits fund, we provide your plan with the potential for growth by way of bonuses. Any profits generated by the fund are used to add an annual bonus to your ISA and possibly a final bonus when you withdraw your money.

We have paid annual bonuses on our Stocks & Shares ISA for the past 15 years.

  • In 2018 the annual bonus rate was 1.75%.

The annual bonus is applied to the amounts you have invested, less the amounts you have withdrawn, and any annual bonuses that have been previously added.

The addition of any bonus is not guaranteed and you may not get back the full amount originally invested, dependent on the investment conditions at withdrawal.

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 rate is provided for information purposes only and should not be considered an indication of likely future performance.

Are there any charges?

There is an Annual Management Charge which is initially set at 2% of the value of your ISA. We deduct charges upfront before we declare bonuses. This means there are no additional charges for you to pay. This charge could increase, but we promise it will never exceed 3% of the value of your ISA in any one year. The charges are designed to cover our costs for administering the ISA on your behalf. For more information about charges, please take a few minutes to read the relevant Stocks & Shares ISA Key Information Document (lump sum or monthly) and Important Information.

What happens if I cash-in my ISA?

Being a with profits investment, your ISA will benefit from the potential for growth the longer it is kept invested. Ideally for a minimum of 5 years but the longer the better. However, you can cash-in your investment whenever you want. The cash-in value will depend on the amount invested, the amounts that have been withdrawn and any annual bonuses that have been added. Depending on the investment returns achieved and our costs, in good investment conditions we may also add a final bonus. However, in not-so-good investment conditions, we may apply a Market Value Reduction (MVR) which will reduce the plan’s value and may mean you get back less than was paid in.

For more details please take a few minutes to read the Important Information document.

What if I change my mind?

If you change your mind and wish to close your ISA within the 30 day cancellation period, you can just complete the cancellation form and return it to us.

You can cash-in your ISA whenever you choose after the 30 day cancellation period has passed. But due to the nature of the investment, you may find you get back less than you have paid in.

For more information please see the Important Information document.

I’m not sure if an ISA is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser. Of course, you may have to pay for this advice.

Three ways to top up an existing ISA

1

Online

Make a one-off, secure, payment from your debit card. Top up online now.

2

By phone

Call us on 0800 988 2418 and we can take a payment from your debit card over the phone.

3

By post

Download the ISA Top Up Form and either complete the Direct Debit instruction or attach a cheque for the lump sum contribution amount, then send it back to us and we will do the rest for you.

 

TOP UP ONLINE TODAY

Ready to get started? APPLY ONLINE

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418