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Tax-Exempt Savings Plan (TESP)

An affordable and tax-efficient way to save regularly for the future

Our new Tax-Exempt Savings Plan (TESP) is a simple product that lets you put a little away every month over the long term. At the end of your chosen term you get a tax-free lump sum to spend on whatever you want. You can save for yourself or for children or grandchildren and can use the proceeds to help fund a range of things – from holidays and university fees or maybe just a nest egg for the future. It’s a great way to build up savings steadily over time.

About our TESP

TESPs are only available from friendly societies and anyone over 16 can buy one. Our premiums are fixed at £25 per month and you can choose to save for between 10 and 25 years. When the policy pays out at maturity it is free from income tax and capital gains tax. Your money is invested in our with-profits fund in a mix of company shares, property, cash and fixed interest gilts and bonds. This spread of assets represents greater potential for growth than a deposit account offered by banks or building societies in return for a risk to your capital. At the end of your chosen term, the policy pays you a lump sum of money called the guaranteed maturity benefit plus any bonuses which are based on the performance of our with-profits fund.

For you or a child

You can take out a policy for yourself or as a gift for the future for a child or grandchild. Children’s policies cannot mature before the child’s 16th birthday, so their policy might need to run longer than 10 years.

  • It might be suitable for someone who:

    • Does not currently have a friendly society tax-exempt savings policy;
    • Wishes to take advantage of a tax-efficient investment;
    • Expects to be able to maintain the monthly premiums for the full term of the policy, which will be your choice of between 10 and 25 years;
    • Would like to invest in a stocks and shares related investment but is not prepared to take the risk of investing directly into the stock market, and accepts the risks of investing in a with-profits fund that invests in equities, commercial property, and fixed interest securities (government and corporate bonds);
    • Does not need the policy to provide a fixed sum of life cover.
  • It might be not suitable for someone who:

    • Already has a tax-exempt savings policy with a friendly society, which would prevent you from buying this one;
    • Will be unable to keep up the monthly premiums throughout the term;
    • Wants an investment which has no risks to capital or growth;
    • Wants a fixed amount of life cover.

Next steps

Here at National Friendly we’re committed to making things as easy as possible. If you would like to take out a Tax-Exempt Savings Plan please follow the steps below.

Step 1

Download information pack

The pack contains all the information you need to know before taking out a policy. In particular, please ensure you have read the Key Features document which contains important information to help you decide if this policy is right for you.

Please note: To read or print a PDF file, you must have the Adobe Acrobat® Reader installed: Download Adobe Acrobat

Step 2

Apply

If you decide the policy is right for you, please either apply online or print, complete and return an application form.

Contact us

If you have any questions, wish to apply over the phone or request an application pack be sent by post please call us on 0333 014 6244

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