Established 1863

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Tax Exempt Savings Plan
Tax Exempt Savings Plan
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Tax Exempt Savings Plan

We all need lump sums at various times in our lives. It could be for a special holiday, to help to pay for a child’s wedding or further education, to buy a new car or simply saving for a ‘rainy day’ and unforeseen expenses.

Our Tax Exempt Savings Plan is designed to help you build up a lump sum over the long term by saving a small, affordable amount on a regular basis.


Main Product Features

The Red Rose Friendly Society Tax Exempt Plan allows you to save as little as £10 per month for 10 to 30 years. And as an incentive to save, the government allow premiums of up to £25 per month to be invested in a fund which receives special tax exempt status, resulting in a higher return from the policy. This allowance is in addition to your ISA allowance.

  • Tax free

    The return at maturity (or on death during the term) is free of any personal taxation.

  • With-profits Fund

    Your investment is in our with-profits fund. This is a mixture of equities, gilts, corporate bonds, property and cash. It is important to remember that as a ‘mutual’ we have no shareholders. This means that ALL of our profits belong to our members.

  • Bonuses

    As a member of the Society you share in the annual profits – a bonus is normally added each year which once added, cannot be taken away. Depending on the investment performance a final, or ‘terminal’ bonus may also be paid at the end of the Plan to ensure all members receive their ‘fair share’ of profits made over the term of the Plan.

  • Life cover included

    In the unfortunate event of the death of the life assured during the term the guaranteed sum assured AND all bonuses already added to the Plan will be paid out and a terminal bonus may also be paid.

Things to consider

You will find more information about the Tax Exempt Savings Plan in the key features document and below are some important points that we want you to be aware of:

This is a long term investment of 10 years or more. Although you can cash in the Plan before maturity if you need to, you could get back less than you have paid in

The value of the Plan will depend upon investment performance

Inflation will have an effect on the future purchasing power of your investment

HMRC could change the tax status of these types of policy in the future

Tax Exempt Savings Plan
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Product Comparison Table

Product
Tax Exempt Savings Plan

Stocks and Shares ISA

Investment Bond
Min prem £10 £25 pm
or £500 inital
£500
Max Prem £25
(a taxable version is available if a higher premium is required)
£20,000
for 2017/18 tax year
Unlimited
Min age at outset 17 18 Birth
Max age at outset 74 None 90
Min term (years) 10 None
but should be considered a medium to long term plan (5 years or more)
None
but should be considered a medium to long term plan (5 years or more)
Max term (years) 30
(but must mature before 85th birthday)
Unlimited Unlimited
Fixed term Yes No No
Flexible contributions No Yes
can add lump sums, amend or stop regular payments and start again later
No
Life cover Sum assured plus all bonuses added to date of death 101% of the ISA value at date of death 101% of the Bond value at date of death
Transferable No Yes
can be transferred from or to another provider
No