For financial products with a friendlier face
If you have already taken advantage of your full friendly society tax exempt savings allowance then the Kingston Unity Regular Savings Plan could provide an alternative home for your savings. Our Regular Savings Plan runs for a minimum of 10 years (the length of the plan is fixed from the start) and in that time you can save from as little as £5 per month or £50 per year if premiums are paid yearly – providing an opportunity to put aside extra savings. You must fix the premium level at onset.
The Plan provides a guaranteed minimum lump sum (the sum assured) which will be paid to you at maturity, provided you have paid all the premiums due. In addition to this, your Regular Savings Plan may be boosted by the addition of a bonus each year which, once added, cannot be taken away providing the Plan is taken to maturity.
You may also receive a ‘terminal’ bonus when the Plan matures. The amount of the annual bonus and any terminal bonus will depend on the performance of the underlying investments and neither is guaranteed.
If you are unable to continue paying the premiums on your plan you should remember that if you surrender early, you could get back less than you have paid in.
Your money is invested in a fund on which Kingston Unity pays tax but under current legislation, which may change in the future, there is no additional liability to tax on the final maturity value of the plan. However, if you surrender and are a higher rate tax payer at the time, then there may be additional tax to pay.
For further details please download our Information Pack which gives the Key Features of the Plan and also includes a generic illustration. If you wish to apply for a Regular Savings Plan you will need to download and read our Application Pack which gives essential details of the Plan and contains everything which you will need to make your application.
For any further details on any of our products please get in touch:
You can save from £5 per month or £50 per year for a minimum of 10 years. There is no upper limit to premiums but premium levels and the term must be fixed at the start of the Plan.
The plan currently has charges of 50% of the first year's premium and 5.5% of the annual premium after the first year. You share in all the profits and losses of running the with profits fund. This will include sharing in any profits and losses from expenses of the whole fund being above or below the total of all the charges levied.
At the start of the Plan you will be given a sum assured based on the premium level you choose to pay. The sum assured is the minimum amount you will receive on maturity, provided you pay all the premiums due and you let the Plan run to the maturity date.
At maturity you will receive the sum assured plus any bonuses that have been added to the Plan.
If you choose to cash your Plan in early by surrendering your Plan then you will not receive anything if you surrender before one year’s premiums have been paid.
If you surrender your Plan after one year but before the maturity date then your surrender value will depend on how long you have paid your premiums for. You will not get back more than you have paid in if you surrender in the early years.
Your money is invested in a fund on which Kingston Unity pays taxes. Currently you will not be subject to taxation on maturity proceeds on your plan. However, if you surrender your plan and you are a higher rate taxpayer in that year you may be liable for tax on your investment gain at the difference between the higher and basic rates of tax.
In addition, the amount of the gain may result in a reduction of the amount of any old age relief or child tax credits being received. This information is based on our understanding of current taxation legislation which may change in future.
The premiums are invested in the Kingston Unity With-Profits Fund which invests in a mixture of assets such as property, fixed deposits, shares and cash. Find out more »
© 2010 Kingston Unity | Printed from: www.kingstonunity.co.uk/products/regular-savings-plan/