Our Products Explained – Tax Exempt Savings Plans

14.11.2018 by Jim Ker

The first in our new blog series explaining our products looks at our Tax Exempt Savings Plan or TESP. Tax Exempt Savings Plans allow people to save up to £25 per month (or £270 annually) with Friendly Societies tax-free, in addition to their personal ISA allowance.

TESPs are uniquely available through Friendly Societies, so you will not find them offered by any high street bank or building society. TESPs are a firm family favourite among our Members. Whether building up your own nest egg or saving towards a grandchild’s significant birthday they have universal appeal to those interested in saving regularly over 10 years or more.

Below are a few highlights of our TESP:

  • You choose how much you pay in: pay between £15 and £25 each month (£5 to £25 for a child) or £180 to £270 if paying annually (£50 to £270 for children).
  • You choose how long the plan runs: anything from 10 years to 30 years – you can even choose a date when you would like the plan to mature, i.e. for significant birthdays or anniversaries.
  • Understand the value of your Plan: When opening a TESP, you will be told your Guaranteed Lump Sum – this is the value you can expect to receive at maturity before any bonuses are applied, assuming the product runs to maturity and all premiums are paid in full.
  • Watch your Plan grow: Unlike a standard savings account, each year, profits are returned to Members as a bonus, which is applied to the Guaranteed Lump Sum rather than the amount paid in at that date. Bonuses are dependent on the performance of the underlying fund so are not guaranteed. Once applied, however, bonuses cannot be removed.
  • Add a little extra: Additionally, anyone under 65 may add Life Cover to their plan. If the Life Cover option is taken with the plan, then you are guaranteed to receive the Guaranteed Lump-Sum plus all bonuses upon death, regardless of how many contributions you may have made.

Learn more about our Tax Exempt Savings Plan here.

Our next product will explain the details of our Investment ISA and how it can help you to get more out of your annual tax-free allowance.

Please Note: You must confirm you have read the key facts, before downloading this document.

Key Facts about our services and costs

1. The Financial Conduct Authority (FCA)

The FCA is the independent watchdog that regulates financial services. This document is designed by the FCA to be given to consumers buying certain financial products. You need to read this important document. It explains the service you are being offered and how you will pay for it.

2. Whose products do we offer?

We offer products from the whole market

We only offer products from a limited number of companies

We only offer our own products

3. Which service will we provide you with?

We will advise and make a recommendation for you after we have assessed your needs.

You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.

We will provide basic advice on a limited range of stakeholder products and in order to do this we will ask some questions about your income, savings and other circumstances but we will not:

  • conduct a full assessment of your needs;
  • offer advice on whether a non-stakeholder product may be more suitable.

We can only offer products from Kingston Unity Friendly Society. These products will enable you to:

  • protect yourself and your loved ones in the event of death
  • save and invest with the added benefit of protecting yourself and your loved ones in the event of death
  • provide benefit cover in the event of sickness

4. What will you have to pay us for our services?

Normally, if you buy a financial product direct from us, there will be no payments such as commission or fees payable. If there are any commission or fees payable, we will tell you how we get paid and the amount before we carry out any business for you.

5. Who regulates us?

Kingston Unity Friendly Society, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and .the Prudential Regulation Authority. Kingston Unity Friendly Society’s FCA Registered Number is 110056.

Kingston Unity Friendly Society permitted business is advising and arranging life assurance and pensions business.

You can check this on the FCA’s Register by visiting the FCA’s website www.fsa.gov.uk/register or by contacting the FCA on 0845 606 1234.

6. What to do if you have a complaint

If you wish to register a complaint, please contact us:
…in writing Write to Kingston Unity Friendly Society, Complaints Department, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. …by phoneTelephone (01924) 240164

If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.

7. Are we covered by the Financial Services Compensation Scheme (FSCS)?

We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.

Most types of insurance business are covered for 90% of the claim with no upper limit.