Tax-Exempt Savings Plan (TESP)

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

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Why take out a Tax-Exempt Savings Plan?

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 Plan:

  • 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.

Who might it be suitable for?

The TESP 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.
Who might it NOT be suitable for?

The TESP might NOT be 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

Before applying online please read ‘Your Policy Explained’ in the downloadable document below which contains important information to help you decide if the 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

TESP
Information Pack
Download Application Form
Apply online

Call one of our team

We can explain all the important detail and the options available. Call us on: 0333 014 6244.

8am to 6pm Monday to Friday excluding bank holidays. Calls are recorded for training and quality purposes.

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