Regular Savings Plans

SammenForLivet2

In terms of the differing bonus rates - another society tolled me it because 'There is no personal tax liability within the Standard Savings Plan. The only tax paid is Corporation Tax by us within the fund itself and this causes the changes in the bonuses paid'

planteria

yes, the taxes within the fund have an effect. i will be finding out more about this.

planteria

jimjames wrote: »

I really can't see the point in these. Why would anyone bother when an ISA is far more flexible, lower cost and better performance....

not sure about that though jimjames. i was with Kingston Unity this week. the Regular Saving Plan's Interim Bonus is 1.75% this year, which as a 'straight rate' might seem low....but that is applied to the whole sum assured. another member had crunched the number on the growth of a plan over 8 years and it is the equivalent of 7.7% compound growth.

i have been maxing my ISA allowance in recent years, and intend to continue to do so. so i'm not against ISAs, i'm all in favour. but i like the other investments alongside too.:)

patientperson

planteria wrote: »

i have been maxing my ISA allowance in recent years, and intend to continue to do so. so i'm not against ISAs, i'm all in favour. but i like the other investments alongside too.:)

Well worth looking at imo

planteria

do you have any Regular Savings Plans alongside TESPs with Friendly Societies, pp?

patientperson

planteria wrote: »

do you have any Regular Savings Plans alongside TESPs with Friendly Societies, pp?

Indeed I have planteria.

Foresters FS - 10 year Regular Savings Plan started 12/2004

Forester Life - Life Savings (Ex CWFS) started 02/2008

planteria

Thank you pp.

planteria

do the Foresters Friendly and Forester Life plans calculate the bonuses based upon the sum assured, rather than the investment to date?

patientperson

planteria wrote: »

do the Foresters Friendly and Forester Life plans calculate the bonuses based upon the sum assured, rather than the investment to date?

These plans are quite different to TESPs and I started them when I was looking at all things mutual and at that time had already used up my TESP allowances with other Friendly Societies.

My Foresters FS was a simple £10pm plan which is no longer marketed. Their nearest plan (excepting TESPs) is a Guaranteed Growth Plan at £50 pm with a minimum of 10 years. They claim that the GSP is a savings vehicle designed to pay a guaranteed maturity amount at the end of the chosen term.

http://www.forestersfriendlysociety.co.uk/media/7545/guaranteed-savings-plan-key-features-document.pdf

The Forester Life plan is again different and no longer marketed.
This was with the original Communication Workers FS (CWFS) who merged with Forester Life. http://www.foresters.com/UK-EN/Documents/CWFS.pdf (No windfall planteria).

Their nearest plan today is £20 pm with a minimum of 5 years .. and not an assured amount on maturity.

http://www.foresters.com/UK-EN/products-services/saving-investing/Pages/Savings-Investment-Plan.aspx

http://www.foresters.com/UK-EN/tools/FAQ/Pages/SIP-Keyfacts---Key-Features.aspx

All in all, the alternative TESP savings plans are not expensive and will certainly suit some people but I readily concede that the plans are not for everyone.

My existing TESPs will run till 2019 so I have quite a few years before another decision concerning re-investment becomes necessary.

planteria

great post pp, i appreciate the info.