Teachers Assurance Tax-Free Savings Plan

Dwayne_Quest

My teaching union have sent me details of a tax-free savings plan, which you can use as well as an ISA.

The premise is that you save £25 a month for a period of time (anywhere between 10 and 25 years) and that afterwards you get the return on your money. If the market goes south, but you have paid your £25 every month, then you get the entire amount back; they advertise it as risk free (as long as you pay in each month!).

The amount of money is quite small, but it is roughly the amount of spare money that I have each month after putting my money into my ISA (which gets maxed each year). I have no experience of long term savings and I'm unsure of tying my money up for so long. I am unsure as I think the return could be quite small, rather than being unsure of saving the money as I know that I could cope with -£25 a month.

This is the plan: http://www.teachersassurance.co.uk/savings_tax_free.shtml

Could anybody with more experience give me their opinion?

Thank you.

cardsharps

Check out the charges. These plans are a right Royal rip-off.

MarkFromCornwall

Dwayne_Quest wrote: »

My teaching union have sent me details of a tax-free savings plan, which you can use as well as an ISA.

The premise is that you save £25 a month for a period of time (anywhere between 10 and 25 years) and that afterwards you get the return on your money. If the market goes south, but you have paid your £25 every month, then you get the entire amount back; they advertise it as risk free (as long as you pay in each month!).

The amount of money is quite small, but it is roughly the amount of spare money that I have each month after putting my money into my ISA (which gets maxed each year). I have no experience of long term savings and I'm unsure of tying my money up for so long. I am unsure as I think the return could be quite small, rather than being unsure of saving the money as I know that I could cope with -£25 a month.

This is the plan: http://www.teachersassurance.co.uk/savings_tax_free.shtml

Could anybody with more experience give me their opinion?

Thank you.

From the link you posted:

"A variable annual management charge which is

shown in your personal illustration."
I wonder if it will vary upwards or downwards?

Dwayne_Quest

Thanks for pointing them out. As they aren't actually on the page of the plan, rather they are linked to, they seem quite hidden. The plan does not seem at all worth it. I wonder why the union sends these leaflets on, like a recommendation, when they aren't that good?

opinions4u

Dwayne_Quest wrote: »

I wonder why the union sends these leaflets on, like a recommendation, when they aren't that good?

Commission.

Dwayne_Quest

Even the 'good guys' are in on it. I feel that I have learnt many valuable life lessons in the last few years.

Welcome to adulthood.

jimjames

Dwayne_Quest wrote: »

Thanks for pointing them out. As they aren't actually on the page of the plan, rather they are linked to, they seem quite hidden. The plan does not seem at all worth it. I wonder why the union sends these leaflets on, like a recommendation, when they aren't that good?

They make (a lot of) money from them.

There was another post here from someone who took out the unison version of these plans. They had realised what poor value it was but were unable to cancel unless they lost their money.

Being tied into a plan like that for 10+ years is crazy, at least with things like ISAs you can stop and start at any time without penalty.

There is also no tax benefit from it unless you pay higher rate tax so it is misleading to sell it as tax free (which it is) but most people won't pay tax on investments outside of it anyway./

dunstonh

Dwayne_Quest wrote: »

Thanks for pointing them out. As they aren't actually on the page of the plan, rather they are linked to, they seem quite hidden. The plan does not seem at all worth it. I wonder why the union sends these leaflets on, like a recommendation, when they aren't that good?

The unions tend to flog or promote obsolete products that earn them a fortune in commission. Do not think for one minute that the unions are an unbiased champion for the employee.

suziewuzie

What do you think of other Teachers Assurance products like S&S ISAs and other 'investments'? I have a lump sum coming from my pension and really don't know how best to save/invest it. I am assured that you don't pay any up front fees with TA - is this completely outweighted by the charges on all their a/cs? I will not be able to do my own S&S Isa as I am pretty clueless about what shaes to buy etc. Maybe I should just blow the money on a new car and holidays! I'm just so scared of being hard up as I get older, and having my life choices restricted because of lack of funds.

atush

If you are filling your cash Isa allowance each year,. why not put that same 25 quid into an investment trust savings plan? Somebody who takes smaller investments in that range like invesco perpetual or Witan etc.

opinions4u

See an IFA if you have a lump sum.

Review everything.

A once in a lifetime opportunity to get this right.

There are dozens of better providers out there.