Regular Savings Plan
A clever tax-free and tax paid combination
The Regular Savings Plan is a 10 year plan that allows you to cleverly combine tax-free and tax-paid saving with monthly premiums starting from as little as £15 per month. The table below provides a detailled summary of the plan. For more information on Regular Savings Plan please visit the in detail tab.
| i Your Regular Savings Plan | i Things you should consider |
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No advice has been provided by Scottish Friendly in relation to this plan. If you are in any doubt as to whether this plan is suitable for you, you should contact a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk. Advisers may charge for providing such advice and should confirm any cost beforehand.
A clever tax-free and tax paid combination
Regular Savings Plan is a 10 year with-profits plan. If you’re a UK resident, aged between 16 and 55, Regular Savings Plan may be something for you.
With Regular Savings Plan you can invest as much as you like. It is over and above tax allowances such as ISAs. The first £25 per month goes into a tax-free plan. Under current law, you’re allowed to invest up to £25 per month tax-free with a friendly society such as Scottish Friendly. You don’t pay tax on the growth of that money (other than tax on dividends from UK shares).
The rest of your payment goes into a tax-paid plan, where we deduct the tax from the growth. So you can cleverly combine tax-free and tax-paid saving.
So there’s not a penny to be paid in taxes when you cash in your Regular Savings Plan after 10 years. Please note that tax treatment depends on your individual circumstances and tax regulation is subject to future change.
Develop a regular investment habit from £15 per month
You can put away as little as £15 or more per month in Regular Savings Plan.
Putting money aside could quickly become a habit. When you set up paying into your Regular Savings Plan by Direct Debit, you may hardly notice the payment.
Please remember, if you stop your plan within the first 2 years, you get nothing back. After the first 2 years, the payout may be lower than what you’ve paid in.
Growth potential of Regular Savings Plan
Your Regular Savings Plan money is invested in the Scottish Friendly With-Profits Fund. It is carefully managed across a range of assets, aiming for long-term growth and a degree of security in the form of a guaranteed minimum cash sum after 10 years. Please go to 'How we invest your money' to see how we look after your investment.
The guaranteed minimum cash sum will depend on your age and how much you pay each month. At first, the sum will be less than the money you’ve paid in. But it’s designed to increase through the addition of bonuses.
The main long-term growth potential comes from the addition of regular bonuses and a potential final bonus. These bonuses are used to increase your guaranteed minimum cash sum. Their value is based on the profit we make, our investment returns and the way in which we distribute these to our customers. The bonuses are not guaranteed.
With Regular Savings Plan you also get life insurance. This ensures that on death your estate will receive at least your guaranteed minimum cash sum plus any locked in bonuses. The level of cover depends on your age and payments into your plan. You should consider if this is appropriate for your financial needs.
Look how much you could get back after 10 years
Projected returns on £40 a month invested over 10 years*.
Projected returns for illustration only. Remember your original investment is not guaranteed and you could get back less than the amounts shown.
Source: Scottish Friendly. Based on someone aged 40 next birthday at outset investing £40 per month (*a total investment after 10 years of £4,800), the premium is split; £25 invested on a tax-free basis and £15 invested on a tax paid basis.
| Illustrated growth rates used for: | Lower rate | Middle rate | Higher rate |
|---|---|---|---|
| Tax-free part of investment | 4.75% p.a. | 5.75% p.a. | 6.75% p.a. |
| Tax paid part of investment | 4.% p.a. | 5.% p.a. | 6.% p.a. |
The annual rates of growth have been based on our reasonable estimate of potential returns and are lower than the maximum allowable investment growth assumptions. All the figures include the deduction of the actual charges assumed on the plan. These figures are only examples and the projected benefits are not guaranteed. They are based on premiums being paid for the full 10 years. They are not maximum or minimum amounts; what you get back depends on how your investment grows and the actual level of future bonuses. You could get back more or less than this. Do not forget that inflation would reduce what you could buy in the future with the amounts shown. (For details on the effect of deductions on your plan, please see the 'How could the charges affect my investment' section of the Key Features).
Get your Regular Savings Plan
Starting a Regular Savings Plan with Scottish Friendly is easy.
Make sure you have read and understood the Key Features and ‘How we invest your money’ guide before you apply. Then you’re ready to:
- Apply online;
- Download an application form and post it to:
Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR. - Or order an information pack which we’ll send you in the post.
If you apply, we suggest printing or saving a copy of this page, other relevant pages, the Key Features and 'How We Invest Your Money' guide.
