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Tax-Exempt Savings Plan

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Our Bonus Plan is a tax-exempt savings plan with life insurance included, designed to help you save for your long-term future.

Tax-exempt saving over and above your annual ISA allowance with our Bonus Plan.

Our Bonus Plan is a tax-exempt savings plan that allows you to save tax-efficiently for your long-term future regardless of whether you’ve already used your annual ISA allowance or not. The Bonus Plan is tax-efficient meaning that, unlike a normal savings account, your money will be free from income tax and capital gains tax, and when your plan ends the money you withdraw from it will be tax-free.

Your money will be invested for a minimum of 10 years with the aim of achieving an increase in the value of the amount you invested with the aid of annual bonuses, the value of which will depend on the performance of the fund your money is invested in. Plus, if you die during the term of your policy, your dependents will receive a guaranteed, tax-free lump sum.


Features of our tax-exempt Bonus Plan


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Tax breaks over and above the annual ISA limit

Due to the fact we’re a friendly society we’re able to offer you further tax advantages over and above the annual ISA allowance. This means you can get tax breaks on your savings that some other savings providers can’t offer.

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Simple saving, from £10 per month

There’s nothing complicated about our tax-exempt Bonus Plan, you can simply open the plan online and pay a monthly Direct Debit into the account. Premiums start at just £10 monthly and you can save up to £25 a month tax-efficiently. You can save more than this into your policy if you wish but the extra amount will not benefit from the same degree of tax efficiency. However, the final maturity payment to you will still be tax-free.

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Valuable life cover for you throughout your investment term

Our Bonus Plan is so much more than just a long-term investment plan. When you take out the plan we’ll provide you life cover too, meaning that if you die within the term of the plan your family will receive a tax-free lump sum, the value of which will depend on your monthly premium and your age at the start of the plan. To find out how much life cover you could get, just get a quote online.

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A long-term investment, with your future in mind

When you open our Bonus Plan your money will be invested for a minimum term of 10 years, meaning you’ll be saving for your long-term future. This gives your money more potential for growth from annual bonuses, and more protection from adverse fund performance too.

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An uncomplicated stocks and shares investment

Unlike some other long-term stocks and shares investments there are no tricky fund and investment choices to make with our tax-exempt Bonus Plan. Instead, we invest your money on your behalf in our With-Profits Fund, which invests in a mix of assets including stocks and shares, bonds, property, cash and more.

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Annual bonuses to add value to your investment

We aim to add an annual bonus to your investment in order to give you an increase in the value of the money you have invested. However, the value of these bonuses is not guaranteed, and in years when performance is particularly poor we may not pay a bonus.

Apply for a Shepherds Friendly plan online and get a Love2Shop voucher code worth up to £50* once you’ve made your first payment into the plan

Apply for a Shepherds Friendly plan online and get a Love2Shop voucher code worth up to £30*

You can redeem this online with hundreds of retailers...

Plus many more!

* Click here for terms & conditions

What savings plan may best suit your needs?

Discover what options are available to you, whether you're looking to start a savings plan for yourself or a child.

How to open our tax-exempt Bonus Plan: You can open a plan online quickly and securely by clicking the button below:

Alternatively, if you would like assistance in applying or would like more information regarding the plan, you can speak to a member of our customer services team by calling 0800 526 249


IMPORTANT THINGS TO CONSIDER

  • How your investment performs may vary during the term of the Bonus Plan. Because of this you may have a higher or lower lump sum than you expect at the end of the Bonus Plan.
  • If you take your money out of the Bonus Plan during the first few years, you are unlikely to get back as much as you have put in.
  • If you take your money out at any time before the end of the Bonus Plan, you may have to pay to do so. This cost could be more or less than the examples in this leaflet.

All references to taxation are to UK taxation and are based on Shepherds Friendly Society's understanding of current legislation and H M Revenue and Customs practice which may change in the future. For our With Profits plans investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract. Please ensure that you read the full terms and conditions of this plan which are available from your financial adviser or by contacting us directly.

Please note: No advice has been provided by Shepherds Friendly. If you are in any doubt as to whether a plan is suitable for you, we recommend getting in touch with a financial adviser, who will be happy to take you through what options are available. Should you consult a financial adviser there could be a cost involved and you should confirm this cost beforehand.