Friendly Society Plan
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:
Changing funds and risk profile allowed: Yes - only for some Friendly Societies
Life Insurance Included: Yes
Personal Tax Benefits:
Can be held inside Trust: No
Insolvency Compensation Limits:
Insurance Company Funds - 90% of total funds invested. No Limit.
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 is a number of Friendly Societies in the market and they offer investments from Individual Savings Accounts, children's bonds and family bonds to pensions and protection plans.
We can help you with your friendly society plan contact us for advice and more information.