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£25 monthly tax-free allowance ?
gakochan
Posts: 64 Forumite
Hello everyone. I'm sorry if this is a FAQ, or a naive question, but I have searched the whole site and the forums and not seen anything about this.
Scottish Friendly offer a Bond (http://www.scottishfriendly.co.uk/sc...ond/index.html)
saying:
"The Scottish Bond is a great way to make the most of your tax-free allowance. The Government lets you invest up to £25 a month tax free with a friendly society. You can use this tax-free savings allowance even if you already have an ISA. If you don't use it, you simply lose it."
I haven't seen any mention of this "£25 per month (Max) tax-free allowance" anywhere before. Nor that it (only?) applies to saving with a "friendly society" as S.F. say above.
Does anyone have any views on this?
many thanks
gakochan
Scottish Friendly offer a Bond (http://www.scottishfriendly.co.uk/sc...ond/index.html)
saying:
"The Scottish Bond is a great way to make the most of your tax-free allowance. The Government lets you invest up to £25 a month tax free with a friendly society. You can use this tax-free savings allowance even if you already have an ISA. If you don't use it, you simply lose it."
I haven't seen any mention of this "£25 per month (Max) tax-free allowance" anywhere before. Nor that it (only?) applies to saving with a "friendly society" as S.F. say above.
Does anyone have any views on this?
many thanks
gakochan
Wins: Underpants, Rizla vending machine, Grand Prix tix, T-Shirt & cap, Brands Hatch tix, tanning fluid, pen, food voucher, Manchester Town Hall tour, Flahavan's Oats, Rexel stapler, canvas photo, egg cup, calendar, The Fall tix. Thanks everyone
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Comments
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There have been many threads in the past. A couple in the last few weeks. However, this is busy forum.
The friendly society allowance is small and the charges on these plans are often far more than the tax you would save compared to a unit trust or investment trust. They are largely obsolete nowadays and should have been killed off years ago.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I have one such bond with SF - as doed Mrs GG.
I reckon if I make as much as they spend on glossy mailings offering me other products, it should return a healthy profit. Sadly, I doubt that it will but I look forward to payout day when I can do the sums and discover how wise/unwise the policy has been.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
The Chancellor is Scottish. (Come to think of it, so is Alistair Darling!) So I doubt there will be any 'killing off' dunstonhThere have been many threads in the past. A couple in the last few weeks. However, this is busy forum.
The friendly society allowance is small and the charges on these plans are often far more than the tax you would save compared to a unit trust or investment trust. They are largely obsolete nowadays and should have been killed off years ago......under construction.... COVID is a [discontinued] scam0 -
always be extremely suspicious of people who offer free gifts for taking out a plan.earn what you can, save what you can, give what you can :hello:0
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DebtphobicDeirdre wrote: »always be extremely suspicious of people who offer free gifts for taking out a plan.
That is a good call. If they need a gimmick to sell it then it may not be as good as they are telling you.
Its a bit like the over 50s plan that says "and no salesman will call". Obviously a dig at advisers playing on poor reputation. However, no "salesman" will call because the products are rubbish and you couldnt justify it. However, if you choose to buy it without advice that is your own fault. At least you got a carriage clock though.
Just look at the AXA thread in this section to see how poor these mailshot/tv advertised products can be. They can get away selling products that advisers stopped selling years ago because they are not giving advice and its buyer beware.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
That is a good call. If they need a gimmick to sell it then it may not be as good as they are telling you.
Its a bit like the over 50s plan that says "and no salesman will call". Obviously a dig at advisers playing on poor reputation. However, no "salesman" will call because the products are rubbish and you couldnt justify it. However, if you choose to buy it without advice that is your own fault. At least you got a carriage clock though.
Just look at the AXA thread in this section to see how poor these mailshot/tv advertised products can be. They can get away selling products that advisers stopped selling years ago because they are not giving advice and its buyer beware.
Unfortunately there are a lot of people who just sign up for these plans especially when they are 'plugged' in ads by the famous. In a way there is also an element of inertia where people simply don't do any research and take the word of the literature for granted as being good for them. Its also amazing to see people being caught by the free gift gimmick. I visited a friend years ago who had us walk for 45 minutes to a shop outside of town because they had an offer on pencils. In my temper, I offered to pay him in advance double to save the soles on my shoes!Gordon Brown ate my hamster0 -
Thank you to everyone for helping with my query.
I've found a link to a previous very helpful thread on Friendly Societies here too:
http://forums.moneysavingexpert.com/showthread.html?t=538547
Executive summary: "bargepole time" !
Cheers
gakochanWins: Underpants, Rizla vending machine, Grand Prix tix, T-Shirt & cap, Brands Hatch tix, tanning fluid, pen, food voucher, Manchester Town Hall tour, Flahavan's Oats, Rexel stapler, canvas photo, egg cup, calendar, The Fall tix. Thanks everyone0
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