Friendly Society Plan: Award Winning Investment Advice

Factfile: Friendly Society Plan

Lump sum investments: No

Regular premiums allowed: Yes - maximum £25 per month per person

Flexible payments allowed (stop/start/additional/increase/decrease): No

Investment Risk Profiles Available:

Low Risk funds available
Medium Risk funds available
Medium to high risk funds available
High risk funds available

Changing funds and risk profile allowed: Yes - only for some Friendly Societies

Moving to another company allowed: No

Life Insurance Included: Yes

Personal Tax Benefits:

Capital gains tax free
No personal liability to taxes

Can be held inside Trust: No

Suitable For:

Children
Adults
Non Tax Payers
Basic Rate Tax Payers
High Rate Taxpayers

Insolvency Compensation Limits:

Insurance Company Funds - 90% of total funds invested. No Limit.

Brief Description:

Friendly Societies can also offer other investments such as ISAs and other savings plans but the Friendly Society regular savings plan with its special tax benefits can only be offered by a registered Friendly Society. Friendly Societies have strict investment limits imposed on them, there is virtually no tax to pay on the returns made. Friendly Society plans can be suitable for both adults and children and offer lump sum investment or regular saving options mainly over ten years. A small amount of life cover is included in these plans which is necessary for the returns to be tax free. Also, for this type of plan to stay tax free, if it was taken out for ten years, it should not be encashed earlier than seven and a half years. There are a number of Friendly Societies in the market and they offer investments from Individual Savings Accounts, childrens bonds and family bonds to pensions and protection plans.

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