How does it work?
TESPs are exclusive to friendly societies, like us. Our plans are available for anyone over the age of 16 to buy for themselves, or they can be taken out as a gift for a child or grandchild.
You can choose to save £10, £15 or £25 a month. Even though £25 is the maximum you can save tax-free with a TESP, this can be split across multiple policies as long as they don’t combine to be over £25 a month. This means you could save with multiple policies.
When you take one out, you’ll choose the number of complete years you want it to run for before it pays out to the child, and this will be between 10 and 25 years. And you’re guaranteed a tax-free amount paid back at the end of the term you chose to save for.
It’s a great way to take advantage of a tax-efficient investment, especially for those who’d like to invest in stocks and shares but don’t want to take the risk of investing directly. We’ll manage the investment for you.
What can it be used for?
You have the freedom to spend your savings on whatever you’d like. This may include:
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A holiday or travelling
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Home renovations
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Weddings
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A boost in retirement
Or, if you’re saving as a gift for a child or grandchild, it may be used toward:
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University funds
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Their first car
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A house deposit
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Their first holiday with friends
Overall, it’s a friendly way to save some money for the future, in a steady and secure way.
Ready to start saving?
If you’re ready to start saving, our online application process is quick and easy. Apply here today.
If you’d prefer a chat about your options, please give us a call on 0333 014 6244 and we’ll be happy to help. You can also find additional information on our dedicated TESP page.
*www.finder.com/uk/saving-statistics#how-many-people-have-no-savings-at-all
**www.nhs.uk/every-mind-matters/lifes-challenges/money-worries-mental-health
