Friendly Society Tax-Free Savings

Money, investing, mutuals etc
planteria
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Friendly Society Tax-Free Savings

Post by planteria » Thu Nov 17, 2011 11:46 pm

Friendly Societies can offer Tax-Free Savings policies in addition to ISAs

Teachers Assurance, for example, continually send me reminders about their Tax-Free Savings Plan, allowing up to £25/month to be invested.

anyone using these :?:

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Re: Friendly Society Tax-Free Savings

Post by myfyr » Fri Nov 18, 2011 5:56 am

planteria wrote:Friendly Societies can offer Tax-Free Savings policies in addition to ISAs

Teachers Assurance, for example, continually send me reminders about their Tax-Free Savings Plan, allowing up to £25/month to be invested.

anyone using these :?:
High cost, low returns, old hat, avoid. :(

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Re: Friendly Society Tax-Free Savings

Post by HeadHunter » Fri Nov 18, 2011 7:26 am

It's disgraceful that they are still allowed to peddle these. Even in the good times, it was not at all unusual for people to make zero profit over ten years. I dread to think what they've managed over the last ten years.

Legalised theft - but hey, they're tax free! :roll:

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Re: Friendly Society Tax-Free Savings

Post by planteria » Fri Nov 18, 2011 10:06 am

fair enough

but they often seem to be in their with-profits funds. so if the performance of tax-free savings are poor then other investment bonds and pensions ought to be performing similarly badly. are they :?:

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Re: Friendly Society Tax-Free Savings

Post by Eurovisionfan » Fri Nov 18, 2011 10:37 am

Had one with Liverpool Victoria that came up this year. £270 a year put in, after 10 years, I would have got just over £3,000 - hardly worth it. However, as it's with LV, and by having it, I get membership rights, and it gives me another 2% NCB, taking it up to 77%, I think, so it actually saves me something on my car insurance (which is around £270 including recovery!), so I extended it for another 10 years. The projection is around £7,500 as the original amount is earning money - and I don't think there are any more initial fees, which make it such an unattractive product over 10 years. I'll keep you updated in 10 years time as to whether I did the right thing!!!

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Re: Friendly Society Tax-Free Savings

Post by planteria » Fri Nov 18, 2011 10:45 am

i have a bond with LV too. £2.5k about 10yrs ago now worth just over 3k

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Re: Friendly Society Tax-Free Savings

Post by HeadHunter » Sat Nov 19, 2011 9:00 am

planteria wrote:fair enough

but they often seem to be in their with-profits funds. so if the performance of tax-free savings are poor then other investment bonds and pensions ought to be performing similarly badly. are they :?:
That may well be the case - but the argument that is usually put forward is that small amounts of contribution incur a far greater percentage of costs and so are far more expensive.

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Re: Friendly Society Tax-Free Savings

Post by planteria » Sat Nov 19, 2011 9:31 am

i didn't know that.
and im not arguing that with-profits funds with friendly societies are a good home for our money, just that my understanding was that we were all in the same boat.

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Re: Friendly Society Tax-Free Savings

Post by myfyr » Sun Nov 20, 2011 10:25 am

planteria wrote:i didn't know that.
and im not arguing that with-profits funds with friendly societies are a good home for our money, just that my understanding was that we were all in the same boat.
In the case of this product, the Titanic.

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Re: Friendly Society Tax-Free Savings

Post by planteria » Sun Nov 20, 2011 11:55 am

i have small SHPs with NFU Mutual, Teachers Assurance and Wesleyan
an Insurance ISA with Royal London
the bond, mentioned above, with Liverpool Victoria

not sure which of these are actual 'With-Profits'.

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