friendly societies

bevan_2

Is it worth saving with a Friendly Society. Flier from Scottish Friendly Assurance in magazine this week. Tax free interest like an ISA but you need to save for 10 years with max of 25 pound per month. Any shorter deals than this and should I bother with them?

payless

Make sure you take a look at the Effect of charges , and compare with other ways of saving
( don't know anything about the product provider you mentioned , but some I have seen don't seem , to me at least , the best value way of saving )

dunstonh

These are regulated financial services products and as such we cannot give advice here.

However, for discussion purposes, I wouldnt have one. Payless is spot on about looking at the effect of charges with these plans. Typically, the reduction in yield can be significant and the investment funds are usually with profits. A large reduction in yield in itself is not a reason not to do it. Even DIY, commission free unit truts/OEICs/ISAs show quite high reduction in yields sometimes. However, when coupled with a low potential growth fund, like a with profits fund, the potential for future returns is extremely limited. There are only two compaines I would use for with profits and they are not one of them.

These are pretty much a dinosaur from the old days and IMO, not really suited to todays requirements or comparable offerings.

bevan_2

Thanks, thought this was the case but am always looking to beat the taxman