What does the Regular Savings Plan offer?

The Regular Savings Plan allows you to save as much as you want in a tax efficient way. The Regular Savings Plan combines tax-free saving, in addition to your tax-free ISA allowance, with tax-paid so that your savings can work harder for you and not the taxman. It's a 10-year With Profits savings plan and anyone aged between 16 and 64 can invest.

The tax-free & friendly friendly Regular Savings Plan gives your plan a starter bonus too, if you invest more than £30 a month - a tasty start to your investment.

Tax-free and tax-paid savings

The Regular Savings Plan is a 10-year savings plan and you can save from as little as £15 a month and there's no limit to how much you can save.

No matter how much you invest, the first £25 of your monthly contributions will be invested tax-free. That's because under current law, you can save this amount tax-free with a friendly society.

The rest, if any, will have the tax on any growth automatically deducted by Scottish Friendly. So if you invest £60 a month, £25 will grow tax-free and £35 will grow tax-paid.

Whatever amount you decide to invest at the end of your term there will be no tax to pay, even for a higher rate taxpayer. Tax-free means free of income and capital gains tax except for taxes on UK dividend income from UK shares.

Your premiums are invested in the Scottish Friendly with-profits fund; an expertly managed fund which invests in the stock market, fixed interest funds, property and cash for long-term growth as well as a degree of security.

A starter bonus to boost your return - if you invest more than £30 a month

Your starter bonus is added to your Plan, if you invest more than £30 a month when you start saving and is designed to reduce the effect of charges on your Plan. It's based on the amount you invest. If you save between £30 and £45 a month, a quarter of the first year's premium will be added to the guaranteed cash sum as a starter bonus. If you save £50 a month or more, the starter bonus will be half of your first year's premiums. That's £600 if you save £100 a month. Please note that to get the full benefit of your starter bonus, you will need to make all your regular payments.

A guaranteed cash sum - plus potential bonuses!

When you take out a Regular Savings Plan, you have the reassurance of knowing that after 10 years, or earlier if you should die, you will get back a guaranteed minimum cash sum. The value of the guaranteed sum, which protects part of your total investment, is based on your current age and the amount you pay each month for the whole term. If you cash in early you may not get back as much as you have paid in.

Your main long-term growth potential comes from annual bonuses and a final bonus which may be added to the guaranteed cash sum. The value of bonuses, which are not guaranteed, depends on how much profit the With-Profits Fund makes and how we decide to distribute it. As we don't have any shareholders, all our profits are shared among savers like you. Any final bonus will be added at the end of the term.

You're in charge

There's no upper limit to how much you can save in the Regular Savings Plan (the minimum is £15 a month) but the more you save the bigger the payout could be at the end of 10 years. You'll see how both your tax-free and tax-paid savings are performing from your annual statement.

Life cover built in

Your Regular Savings Plan automatically includes life cover so that if you were to die during the term of the plan, you have the reassurance of knowing your family would receive a guaranteed cash sum at a difficult time. The amount of life cover depends on age and may be subject to medical conditions. Anyone aged between 16 and 64 can invest. You should consider if life cover is appropriate for your financial needs.

Scottish Friendly's past performance

Scottish Friendly is one of the UK's top friendly societies with a long and proven track record. Had the tax-free Regular Savings Plan been available ten years ago, someone who started saving £60 a month then would have just received a cheque for £9,104.*

As well as the starter bonus, the payout would have included annual bonuses and a final bonus.

While this particular plan was not available 10 years ago, the With-Profits Fund into which it invests was. Over the past decade, Scottish Friendly with profits plans have enjoyed consistent high performance in the annual Money Management magazine with profits performance survey and have achieved a top ten position in the most recent survey.

Past performance is not a guide to future performance. Bonuses are not guaranteed. If you cash in the Regular Savings Plan before the end of the term you may not get back as much as you have paid in. Capital values are not guaranteed with this plan although they are in building society accounts where growth prospects are more certain and where they benefit from ease of access. Don't forget inflation will reduce the buying power of the values shown here in ten years.

*Source: Scottish Friendly. Based on someone aged 40 next birthday at outset saving £60 per month. Figures shown are based on £25 a month in a Scottish Friendly with profits tax-free account and £35 a month in a Scottish Friendly tax-paid account maturing 1 August 2008. The special starter bonus of £360 is included. ** Source: Morningstar. 10 years to 1 August 2008 based on £25 per month into UK Savings £2,500+ Investment Gross and £35 per month into £2,500+ Investment Net. This is a Morningstar index which measures the performance of the savings accounts of a number of current and ex-building societies. Source: Money Management magazine, survey of with profits performance 1998-2008. April 2008.

Apply now

Applying is easy. Simply click on the Apply Now link, read the Key Features then complete and submit your application today. Or if you'd prefer to apply by post, download an application form, read the Key Features then complete it and post it to:

Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR

When you start saving with us, you'll receive a gift. Choose either a £15 Marks & Spencer or iTunes vouchers. Don't forget to select which gift you would like on your application form.

Or, you can request an information pack to be sent to you in the post. This pack includes further information on the Tax-Friendly Regular Savings Plan and an application form.

If you are in any doubt as to whether this product is suitable for you please contact your Financial Adviser.

If you apply for this product, for your records, we recommend you print or save a copy of this and any other relevant pages together with a copy of the Key Features.