How do I apply for a Tax Exempt Savings Plan?
Who can apply for the Savings Plan?
The Plan is available to anyone, under the age of 65, associated with passenger transport their family and friends.
How long is the Savings Plan for?
The Plan will mature on the date you select. It must run for a minimum of 10 years and finish before your 75th birthday. You can choose a special birthday, anniversary or any other important date.
What is the minimum or maximum I can save?
The minimum you can save is £2.30 per week or £10.00 per month and the maximum is £5.75 per week or £25 per month. Contributions are payable by monthly Direct Debit or weekly pay deduction.
Where are the premiums invested?
Your premiums are invested in the Society’s With-Profits Fund, which consists of a portfolio of investments and the aim of the fund is to provide a smoothed growth.
Will my contributions go up after my Plan is set up?
No – Your contributions are fixed for the duration of the Plan.
What will I get back at the end of the term?
You will receive the guaranteed sum assured plus any bonuses you earned.
What is the guaranteed sum assured?
This is the minimum guaranteed amount you will receive on maturity, if you have paid all your contributions.
What if I die before the Maturity Date?
The Plan provides you with life cover from day one so if you should die before the Maturity Date the guaranteed sum assured plus any allocated bonuses (if any) will be paid to your Nominee(s).
Will I get paid any Bonuses?
Bonuses may be paid by the Society depending on the investment performance of the Society’s With-Profits’ Fund. The amount of the bonus is declared each year by the Board of Management. Providing you pay into the Plan until the maturity date (or if you die), bonuses added cannot be taken away. An additional terminal bonus may be added upon death or at the Plan’s Maturity Date. The payment of a bonus is not guaranteed and depends upon the performance of the Society’s investments, expenses and other factors. It is important to note that past performance is not a guarantee of future performance.
Can I make any partial withdrawals during the term of the Plan?
Can I cash my Plan early?
It is important to remember that this Plan is a long term contract. If you decide in the first year that you do not want the Plan you will not be entitled to a return of any of the contributions you have paid in. However, if after one year but before two years have elapsed, you decide that you want to cash it in early you would be entitled to a refund of one third of what you have paid in. After you have paid in for two years or more you would have the choice of one of the following two options:
- Leave the contributions you had already paid in with a correspondingly lower sum assured or
- Surrender the Plan for its surrender value. If you surrender the Plan, particularly in the early years, you may get back less than what you paid in.
You may also be liable to tax on any gain if you surrender the Plan early.
Are my benefits taxed?
If you allow your Plan to mature, your benefits are paid to you tax-free. The Plan takes advantage of the £25 per month tax exempt savings allowance that only Friendly Societies can offer.
Where are my contributions invested?
The Society invests in a wide range of shares, government stocks (sometimes called gilts), property and cash deposits with leading banks. The investment aim of the Society is to maximise long-term growth whilst investing in a balanced portfolio of investments.
How long does it take before my Plan is effective?
The Plan will start once the application has been accepted and the first contribution has been paid.
Can I have more than one Tax Exempt Savings Plan?
Yes – provided the total contributions to all your Savings Plans do not exceed £25 per month.
Does the Society give Advice?
No advice will be given to you by the Society regarding this product. It is your responsibility to ensure that the Plan meets your needs. If advice is required, you should consult an Independent Financial Advisor.
Will I need a medical?
No medical is required for the Society’s Tax Exempt Savings Plan.
Can I continue with my Plan if I change employment?
Do I need to tell you if I change my address?
Yes, so that we can continue to contact you in respect of your Plan. Click here to email us your new address.
After the proposal is accepted you will receive a Notice of your right to cancel. You will then have 30 days in which you can change your mind. If you cancel within this 30 day period you will receive a full unconditional refund.
If the Plan is maintained in full force until death or maturity the benefits payable are currently free of all UK income and capital gains taxes. In addition, the fund in which contributions are invested is tax exempt and thus free from taxes on income and capital gains, with the exception of tax deducted from dividends on shares the Society invests in.
In any legal disputes, the law of England and Wales will apply.
If you have a complaint, feel you have been treated unfairly or are not satisfied with any aspect of the Society, its products or services please contact us at the address below. If the complaint is not dealt with to your satisfaction you can refer your complaint to the Financial Ombudsman Service, Exchange Tower, London E14 9SR (Telephone 0800 023 4567). Following this complaint procedure does not affect your rights to take legal action.
If the Transport Friendly Society is unable to meet its liabilities, compensation may be payable by the Financial Services Compensation Scheme. Further information on the scheme is available from the Financial Services Compensation Scheme on 020 7892 7300 or at www.fscs.org.uk
The TFS is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered and incorporated under the Friendly Societies Act 1992, register number 434F.
When you take out a Plan with TFS you become a Member of the Society and are subject to its rules, a copy of which is available on request.
Transport Friendly Society Limited
3rd Floor, Derbyshire House
St Chad’s Street
T: 020 7833 2616
F: 020 7833 4426
These notes are based on the Society’s understanding of current law and Inland Revenue practice, which may be subject to change. Full details are contained in the Policy Schedule and Terms and Conditions. This Plan is a legally binding contract between you and the Transport Friendly Society Limited.