For financial products with a friendlier face
Putting away a small lump sum every month could reap its rewards with our Tax Exempt Saver.
You can save up to £25 per month, or £270 per year in our tax exempt savings plan to build up a tax free lump sum in the future - and you can even link the plan so that it is paid out on your birthday or a special anniversary. You could use the lump sum towards a special holiday, home improvements, or just for a rainy day.
The plan also has the option of life cover for increased flexibility.
The plan is available to anyone aged from 18 to 75 at entry (or 65 if life cover is chosen). For children, there is our Junior Saver.
Our Tax Exempt Saver offers a guaranteed amount (called a sum assured) that will be paid out on the maturity date of the plan.
In addition to this, the plan could grow in value by the addition of annual bonuses. The level of bonus is not guaranteed but once they have been added to the plan they cannot be taken away as long as the plan runs to maturity and all premiums have been paid.
If you wish to apply for a Tax Exempt Saver, please read the key features and product guide contained withthe Information Pack before applying. You can use the links to the right to access this.
For any further details on any of our products please get in touch:
The Tax Exempt Saver is our friendly society Tax Exempt Savings Plan.You choose the level of premium and term at the start of the plan. At then end of the plan, you will receive the guaranteed sum assured and any bonuses that have been added to the plan.
The plan takes advantage of the £25 per month tax exempt savings allowance that only friendly societies can offer. The plan is free of tax at maturity and there is no taxation within the fund, although the society can non longer reclaim the tax credit on dividends.
You can pay from as little as £5 per month up to £25 per month. If you wish to pay yearly then you can pay between £50 and £270 per year. If you wish to save more than this, or would like increased life cover of up to £100,000 then we offer a Regular Saver.
Yes you can. However, because the Tax Exempt Saver takes advantage of a special government tax exemption only available to friendly societies, total premiums to such plans and other similar plans held with other friendly societies cannot exceed £25 per month or £270 per year.
You will be given a minimum sum assured at onset - this is the minimum you will receive at maturity providing all premiums have been paid.
If you cash the plan in early and at least one year's premiums have been paid then you will receive a 'surrender value'. This is likely to be less than the premiums that have been paid in, especially in the early years. If you cash the plan in before the first year's premiums have been paid, then you will receive nothing.
You may be liable to tax on any gain if you surrender the plan early.
If you have chosen the life cover option then your estate will receive the sum assured and any bonuses attached to the plan.
If you have not chosen the life cover option, then your estate will receive return of premiums paid, plus interest on those premiums of 3%.
If you have chosen the life cover option, then you will need to complete a medical questionnaire. The plan is subject to acceptance. If adverse evidence is revealed on your questionnaire then you may need to undergo a medical examination, the cost of which will be met by the Society.
The premiums are invested in our With Profits Fund. This is a mixture of cash, equities, property and fixed interest investments. The aim of the fund is to provide a smoothed growth.
Each year a bonus rate is declared, depending on the performance of the With Profits Fund. Any bonus declared is added to the plan. There may also be a terminal bonus at maturity. Bonuses added to the plan are guaranteed to be paid as long as the plan runs to maturity and all premiums have been paid.
It is important to remember that bonus rates are not guaranteed and past performance cannot be used as a guide to future performance.
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.
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 »
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