Friendly Societies

[Deleted User]

There seem to be a number of these offering tax exempt savings plans, investment bonds, and regular savers. Does anyone have any experience of these? Are they worth a look?

I notice a few of them offer dental and optical healthcare grants too.

There doesn't seem to be much on this website about them, so thought I'd ask via the forum.

masonic

They are very expensive because they pay large kickbacks to the intermediaries that promote them and refer potential clients. I wouldn't touch them with a bargepole.

A previous analysis of typical products can be found here and here.

dunstonh

There seem to be a number of these offering tax exempt savings plans, investment bonds, and regular savers. Does anyone have any experience of these? Are they worth a look?

Should have been killed off years ago. Tax free endowments effectively with 1980s style charges that wipe out the tiny tax benefit. S&S ISAs trump them every time.

I notice a few of them offer dental and optical healthcare grants too.

And now you know why the charges are higher.

macman

The tax free saving is not huge: maximum £300pa.

veryintrigued

Am not going to be popular here but I took out two some years ago (direct) with Liverpool Victoria for God children. One is due for maturity next year after 16 years and has performed tremendously well.


These were of the Regular Saver type and 'invested' only the minimum of £15 a month.

[Deleted User]

Thanks everyone. I think I'll look elsewhere, but well done to veryintrigued for finding a regular saver with a friendly society that has performed well. I don't think I'll risk the high charges.

dunstonh

ut well done to veryintrigued for finding a regular saver with a friendly society that has performed well.

Timing would have been the reason. However, think about the result in a similar fund with lower charges. Although to be fair, at just £15pm, the choice would be so limited, that high charge options would likely be the only things available. You get better choice at £20pm and near whole of market choice at £50pm

kidmugsy

We've had a few FS investments. We have been particularly pleased with the Ancient Order of Foresters.

Archi_Bald

You can most likely get a better return from a Regular Savings account, or even a current account, particularly so when the new savings allowance kicks in next April. None of these require you to tie up your money for 10 years.

ratechaser

kidmugsy wrote: »

We've had a few FS investments. We have been particularly pleased with the Ancient Order of Foresters.

+1 to that, I have a 25 year policy with them due to mature in a couple of years that pays a guaranteed 12% P.A. 😮. Wish I could have invested more, although to be fair, 12% wasn't that exceptional back then. How times change...

masonic

ratechaser wrote: »

+1 to that, I have a 25 year policy with them due to mature in a couple of years that pays a guaranteed 12% P.A. 😮. Wish I could have invested more, although to be fair, 12% wasn't that exceptional back then. How times change...

No doubt your 12% return will be paid for in part by those people taking out the much less generous policies available today.