Tax Free Savings Bonds Providers

robbsafc

I currently have a 10 year tax free savings bond with Family Investments. All the payments have been made and it is due to mature next July. However I am looking to start another one for my wife then myself next year again. The savings are tax free as long up to a maximum of £25 per month or a £270 lump sum per year as per Government restrictions. I have had a look around on here on a couple of other financial websites to try to find other providers of this type of savings without success. Is there a specific name to this type of savings and where can I find other providers of this type of product as I am unhappy with Family Investments.

Many thanks in advance.
Rob.

Baldur

They are usually provided by 'Friendly Societies' and are generally perceived by many users of this board as being a very poor investment, mainly due to high charges which lead to low/very low returns.

blinko

rob with all due respect £270 per year tax free just isnt going to be worth you time

at 10% its 27 pa at 3% its £9

inflation is 3%

Loughton_Monkey

I think Prudential still do these.

This type of product has its roots in some form of perceived tax loophole. The 10 year term, plus a tiny (1%) extra payback if you die, made these "Qualifying Life ssurance", hence the proceeds were tax free provided you run the full 10 year term.

Then along came ISA's, giving us all a far more flexible way of tax free saving, so they have generally gone by the board. Probably, these things are not going to have much of a return, even despite being tax free. But could be worth considering if you have all your ISA's full or if you have a deep seated aversion to paying Mr Osborne any money.

dunstonh

I think Prudential still do these.

Not any more. I think theirs used to be MIPs or endowments rather than Friendly Society plans.

This type of product has its roots in some form of perceived tax loophole. The 10 year term, plus a tiny (1%) extra payback if you die, made these "Qualifying Life ssurance", hence the proceeds were tax free provided you run the full 10 year term.

yes, you describe the endowment/MIP type.

Is there a specific name to this type of savings

Friendly Society Savings plans.

As others have said, they are expensive, obsolete and the tax free element is a red herring as there is very little tax free benefit to basic rate taxpayers or lower. For most people a Stocks & Shares ISA is the modern alternative that is better placed.

Loughton_Monkey

dunstonh wrote: »

Not any more. I think theirs used to be MIPs or endowments rather than Friendly Society plans.

Yes, you're right. Friendly Societies are covered under totally different rules. Pru has never been a FS.

robbsafc

Thanks to everyone for their replies. The only reason I did this was so I was at least saving something. I don't have a huge amount of disposable income. But at least this way I'm saving something. I do have a cash isa as well which I don't touch just keep moving it to get better rates.

At least I know where to look now.

Many thanks.

Rob