Tax-Exempt Savings Plan
Put your money into a Bonus Plan with added life insurance.
Plan for the long-term
With the 10 year minimum term of our Bonus Plan, your savings have more time to grow.
Start from just £10 a month
With a maximum payment of £25 a month, this really is our most affordable adult savings plan.
Peace of mind built-in
With life cover included, your family receives a tax-free lump sum if you die during the term of your plan.
With our Bonus Plan you enjoy an exclusive tax break while saving for your future. Want to invest beyond the £25 per month limit? Simply open multiple plans, but remember that the tax-efficient benefits only apply to your first plan.
- As a friendly society we can offer this kind of tax-exempt saving on top of your ISA allowance
- With monthly payments taken care of by Direct Debit you can get on with living your life
- Experts manage our medium to low risk fund and make the smart investment choices for you
Remember, the value of investments can fall. You may get back less than you invest. Tax rules can change, and individual effects vary.
Our Bonus Plan offers something that other savings plans don’t. With life cover included – and a guaranteed sum paid to your loved ones should the worst happen to you – this is saving with security.
We’re a financial mutual that’s built on fairness. Everything we do is for our members, not shareholders, and all profits made are paid to you or re-invested for your benefit.
Our members love that we do things the right way
Nine out of 10 members would recommend us for the way we help their savings grow.
Helping our members benefit for almost 200 years
The world’s changed a lot since 1826 but our idea of fairness remains the same.
When you’re member-owned, it matters more
We take the financial future of every member personally, because you’re one of us.
Open a Bonus Plan and get rewarded too. We’ll send you a Love2shop voucher code worth up to £20 when you make your first payment. See our terms and conditions.
Can I open a tax-exempt savings plan if I already have an ISA?
Yes, you can. A tax-exempt saving plan like this gives you an additional tax-free allowance on top of your ISA allowance. There’s also no capital gains or income tax to pay on any returns, even if you’re a higher rate taxpayer.
However, if you stop your monthly payments, or cash your plan in early, you may have to pay tax on any gains. It’s also worth remembering that tax rules may change in the future.
Can I have multiple tax-exempt savings plans?
You can have multiple bonus plans with different providers and pay premiums up to a maximum of £2,400 a year. However, your annual savings in these plans mustn’t exceed £3,600 a year.
Also, only £300 a year can be tax-efficient, so any payments beyond that figure to any additional bonus plans will be subject to tax on the interest.
Can I withdraw money from my plan at any time?
Our Bonus Plan is designed as a long-term savings plan, so you can’t make regular withdrawals. If you really need to, it may be possible to take money out before the end of the plan term, but there could be tax implications to doing this.
Can I withdraw my savings when my Bonus Plan matures?
Absolutely. Once your plan reaches its maturity date – which is set out in your original plan document – you can withdraw the money as a tax-free lump sum.
How do I find out the value of the ‘sum assured’ of my Bonus Plan?
You’ll find this within the documents you received when you opened your plan.
- 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 the Key Information Document.
- If you end your plan before its maturity date, we will calculate the value of the investments that you hold to ensure that you leave the With–Profits Fund with your fair share. If you have been invested through periods of poor investment performance, you may get back less than the current value of your plan.
When you take out an investment product with us your capital is at risk and you may get back less than you have put in. 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. 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 given by Shepherds Friendly, and if you are in any doubt as to whether a savings plan is suited to your needs, then you should contact a financial adviser. There may be a charge for financial advice, and the cost should be confirmed to you before any advice is given.