Savings & Investment Plan
Build a nest egg with
our simple savings plan
Our Savings and Investment Plan can help you enjoy the future you’ve worked so hard for. Whether it’s putting something away for a special anniversary, the holiday of a lifetime or perhaps to go towards a child’s future university costs, the Savings and Investment Plan can help you to provide a cash sum for your future. Your savings and investments are important, especially when they can mean so much in the long term.
What is a Savings and Investment Plan?
Putting a little cash away for the future is always a good idea, don’t you think? It’s there to give you peace of mind for those small emergencies, big goals or just to treat yourself. You can’t put a price on the kind of reassurance that nest egg savings can help to provide.
Our Savings and Investment Plan is provided by POIS who are a part of Foresters Friendly Society, and can be opened by setting up a monthly Direct Debit. Capital at risk.
Request a pack to find out more about the Savings & Investment Plan request a pack
Black Friday Offers
We’re delighted you’re thinking about taking out our Savings & Investment Plan. As a thank you when you take out a plan online by Sunday 3 December 2023, we’ll send you an eGift Card worth up to £110 once three monthly direct debit payments have been received, providing you haven’t held the plan with us before.
Your eGift Card can be swapped, in full or in part, for more than 200 of the UK’s favourite brands – the choice is yours and it’s the ultimate reward!
- £35 for monthly contributions of £26 – £49
- £45 for monthly contributions of £50 – £99
- £60 for monthly contributions of £100 – £149
- £85 for monthly contributions of £150 – £199
- £110 for monthly contributions of £200+
This offer may not be combined with any other offer. See full Terms & Conditions.
Why choose a Savings & Investment Plan?
Build substantial savings
You could build a substantial nest egg of savings for your future. Saving £260 a month over 10 years amounts to £31,200, with the potential for additional growth.
Easy monthly Direct Debit
Save regularly for your future by setting up a Direct Debit for an amount between £26 and £260 per month.
Your make the decisions
It’s a 10 year savings plan, after which time you can choose to cash it in, extend it for a further 10 years or leave it invested – it’s completely up to you.
A responsible investment plan
Responsibly invested in our Savings Fund for potential growth over the longer term whilst making a positive impact on society.
Life cover included
Life cover is automatically included at no additional cost to you.
Great membership benefits
Access to membership benefits including discretionary grants to help towards the cost of things like higher education and healthcare costs
See how much you could save
A real-life example of a Savings & Investment Plan
A £26 per month Savings and Investment Plan which commenced in July 2011 with a 10 year term provided a payout of £4,554.03 at maturity. This is an average annual return of 7.3% and a total return of 45.9%, after administration fees and charges.
The above graph is provided for information purposes. Past performance should not be seen as a reliable indicator of future results. The value of holdings within the fund can fall as well as rise, and you could get back less than you have paid into the plan. As the fund holds overseas assets, the Sterling value of these assets may rise and fall as a result of exchange rate fluctuations.
Please note that a policy taken out in July 2011 had a monthly charge of £0.75 throughout. Policies commencing now will have a monthly charge of £1.50 throughout.
Ready to start making tax-free nest egg savings? Apply today!
Investing responsibly in the POIS Savings Fund
The POIS Savings and Investment Plan invests in the POIS Savings Fund. This is a responsible investment which we believe can not only deliver sustainable, long-term value but that can also make a lasting, positive impact on society.
This is an actively managed fund which aims to provide good potential for growth, over the longer term, by investing mainly in stocks and shares.
When you invest with us your money buys units or shares in a fund and the units in each fund have a daily value which can be used to work out the current overall value of your plan.
To work out the value of your plan simply take the number of units your plan currently holds and multiply this number by the current Unit Price for that plan. For more information about the POIS Savings Fund and to see the daily unit value please see the about our funds information on the POIS website.
Added value for you – Member Benefits
Taking out a Savings and Investment Plan is only the start. By doing so, you will become part of the Foresters Friendly Family and can enjoy some wonderful, unique benefits alongside your investment plan, such as discretionary grants to help towards the cost of things like higher education, dental and optical costs. In 2022, we gave back over £1.65 million to our POIS and Foresters members in the form of discretionary grants and charitable donations.
Frequently Asked Questions
How do I pay into the Savings and Investment Plan?
It’s easy. You can set up a Direct Debit to be paid monthly straight from your bank account. When you apply, you will provide your bank details and we will set the Direct Debit up for you, you don’t need to do a thing.
Your contributions will be collected each month. It is not possible to make a lump sum payment into the POIS Savings and Investment Plan, if you wish to invest a lump sum you can consider other plans we offer such as the Junior ISA, Stocks & Shares ISA or Lifetime ISA which accept lump sum payments by card, bank transfer or online secure payments.
What is the life cover?
Life cover is automatically included at no additional cost to you. When applying for the savings and investment plan you will be asked about your state of health to check your eligibility for the plan. If you are unable to confirm the two points requested, then unfortunately you will not be able to take out a plan.
The amount of life cover is based on the size of contribution you pay and is calculated as 75% of the contributions you are due to make over the plan’s initial 10 year term.
If you are aged 56 or over when you apply, the amount of life cover is reduced by 2% for each year. For example, if you are 56, you will receive life cover based on 73% of the contributions you are due to make over the initial 10 year term. If you are 57 you will receive 71%.
In all cases, the life cover is available as long as monthly contributions continue to be paid. If the value of the plan is higher than the life cover, the plan value will be paid to your estate.
Where is my money invested?
Your money is invested in the POIS Savings Fund which aims to provide good potential for growth, over the longer term, by investing mainly in stocks and shares. It is an actively managed fund which means our expert fund managers make decisions about how to invest the fund’s money as opposed to the fund just following a market index. Investing in different industry sectors helps reduce risk and increase potential returns through diversification. It’s all about not having ‘all your eggs in one basket’.
The contributions you make will be used to purchase units in the fund. The value of holdings within the fund can fall as well as rise, and you could get back less than you have paid into the plan. As the fund holds overseas assets, the Sterling value of these assets may rise and fall as a result of exchange rate fluctuations. For more information on the fund please see the fund information section on the POIS website.
What makes this a responsible investment?
As a responsible investor, we want to manage ESG risks and opportunities when investing on behalf of our members.
We have identified certain sectors, products and services, in which we will not invest, above a certain threshold due to ESG-related risk factors.
Consequently, exclusions on controversial weapons, palm oil, soft commodities and climate risks are applied across all assets.
We also exclude the following sectors and areas within our Savings Fund:
- Tobacco – To avoid financing the tobacco industry and thus contribute to protecting public health.
- Defence : White Phosphorus – To avoid financing companies producing or distributing incendiary weapons with white phosphorus.
- Low ESG Quality – Tight monitoring of companies with the worst ESG practices.
- Severe Controversies – To avoid financing companies in violation of the United Nations Global Compact.
Are there any charges with the Savings and Investment Plan?
As the investment plan is managed on your behalf there are costs which include an annual management charge and a monthly administration charge. These are deducted from the value of your plan.
For more information about charges, see the Savings & Investment Plan Key Information document.
What if my circumstances change and I can no longer pay into my plan consistently?
We understand that the challenges posed by the cost-of-living crisis may impact your ability to save and invest. Although we’d recommend you keep up with your monthly contributions for the plan’s full duration where possible, we understand that this may not be as easy as it once was.
This is where we provide some flexibility with your existing plan contributions.
If you miss some monthly contributions into the plan, you have 13 months to pay the missing contributions, altogether in one lump sum, and continue paying into the plan without the need to close the plan entirely.
If, at the end of the 13 months, you have not made up the missing contributions there will be various scenarios that could apply. Please bear in mind that if you need to stop paying into the plan, your life cover will end, so, if you pass away, the payment returned to your estate will be the value of the plan. Please see the Important Information for further details.
What happens if the plan is cashed in early?
If the plan is cashed in before its 10th anniversary, a charge will be deducted before the cash sum is paid to you. The amount of the charge will depend on how long you have held the plan, as shown in the Important Information.
In the early years, it is possible the plan value may be less than the surrender charge due. In that instance, no plan value will be paid out and no further charge will be payable. If a payout is returned to you, you may be liable for tax on any growth.
What happens if I pass away?
If you were to pass away the value of the plan, or the life cover if higher, will be paid out. This will normally form part of your estate and may be subject to Inheritance Tax, depending on your individual circumstances.
If you wish, you can nominate a beneficiary to receive the value of your plan if you pass away, providing you have kept your contributions up to date. They can receive up to £5,000 immediately following your death. This can help to make a difficult time more bearable for your dependents. This can be done without having to wait for your estate to be administered, which can often be a lengthy process at a difficult time. Any excess over the £5,000 would become part of your remaining estate and have to wait for probate.
I’m not sure if the Savings and Investment Plan is right for me. What should I do?
If you’re unsure as to the suitability of this savings and investment plan, you should seek advice from a Financial Adviser. Of course, you may have to pay for this advice.
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).