Tax Exempt Savings Plans [TESPs]

planteria

patientperson wrote: »

Agreed planteria .. wthin the limits £25 pm / £270 pa (Why not £300 pa is a mystery).

ok, so in that case do RSPs not calculate bonuses based upon the sum assured, thereby paying bonuses on money not yet invested?

planteria

...and it's £300/yr as long as contributions are made monthly.

patientperson

planteria wrote: »

ok, so in that case do RSPs not calculate bonuses based upon the sum assured, thereby paying bonuses on money not yet invested?

In my opinion these plans are not with a sum assured. They are marketed with the standard 3%, 5%, 7% projected growth but no assurances for real growth. Some will guarantee that you will at least get all your invested money back.

planteria

i see, so 'sum assured', with bonuses on the total sum that will be paid in over the terms, is specific to TESPs?

planteria

from KUFS, pp:

http://www.kingstonunity.co.uk/products/tax-exempt-saver/
http://www.kingstonunity.co.uk/products/regular-saver/

im not sure there is any difference in the way the bonuses are calculated.

jimjames

planteria wrote: »

from KUFS, pp:

http://www.kingstonunity.co.uk/products/tax-exempt-saver/
http://www.kingstonunity.co.uk/products/regular-saver/

im not sure there is any difference in the way the bonuses are calculated.

Whereabouts does it show this guaranteed amount? All I can see is a statement you will be told on application.

EDIT - found something in the PDF but not what you have been saying. Not sure where the discrepancy comes in?

Pay in £3000. Sum assured £2952. Hardly a good return guaranteed - in fact you are only guaranteed to lose money?

On the other hand they are at least clear on their fees. 15%!!!! How can anyone justify paying 15% in year 1 and 3% ongoing charges. No wonder performance is so poor when you are paying such a massive amount. And we worry about 1% vs 1.5% in an ISA, absolutely crazy.

The plan currently has charges of 15% of the first year's premium and 3% of the annual premium after the first year.You share in all the profits and losses of running the with profits fund. This will include sharing in any profits and losses from expenses of the whole fund being above or below the total of all the charges levied.

planteria

Sum-Assured on my Kingston Unity TESP was above the total amount i will invest, right from the start jimjames, so, barring the society folding, a guaranteed + return.

patientperson

planteria wrote: »

from KUFS, pp:

http://www.kingstonunity.co.uk/products/tax-exempt-saver/
http://www.kingstonunity.co.uk/products/regular-saver/

im not sure there is any difference in the way the bonuses are calculated.

Agree .. it appears not. The TESP is available age 18-75 whilst the RS is 0-65 and also includes life cover.

planteria

im really busy at the moment, pp. but what i havent been able to establish is whether bonuses are applied to RSPs based upon a Sum Assured which is based upon the total that will be invested, or whether that only applies to TESPs.

jimjames

planteria wrote: »

Sum-Assured on my Kingston Unity TESP was above the total amount i will invest, right from the start jimjames, so, barring the society folding, a guaranteed + return.

Well, you are guaranteed your money back then - hardly a big difference compared to those numbers of £3000 vs £2952. There could be no return above that and you are not having any account taken of inflation.

So £3k in 2003 would not have the same buying power as £3k in 2013. Just to stand still and beat inflation you'd need a return of 27% over that 10 year period. Bonuses and what they are based on are irrelevant - the total return is what matters.

Not sure if any Tax Exempt plans maturing this year have actually done that?