What does the tax-free & friendly UK Select Investment Plan offer?
The Scottish Friendly UK Select Investment Plan is a 10 year investment for anyone aged between 16 and 64 and is designed to help you take full advantage of your tax-free allowance.
Under current law, you are entitled to invest from £15 to £25 a month free of income and capital gains tax with a friendly society. This is a limit set by the Government and it's in addition to any other tax-efficient investments you have invested in, for example, ISAs. If you don't use it, you simply lose it.
What's more, if you want to invest more than £25 a month, you can and any amount over this will be invested in a tax paid policy and Scottish Friendly will deduct the tax due on any growth from this part of your investment. When your plan matures, you will have no further tax to pay on your final cash value, even if you are a higher rate tax payer.
Tax regulation is subject to future change. The fund you invest in receives UK dividend income net of corporation tax.
If you have already invested your tax-free savings allowance you can invest in our tax-friendly UK Select Investment Plan. Click here to find out more.
Give your money the potential to grow
The Plan is designed to help your money grow by giving your regular investments access to the long-term potential of the stock market. It does this by investing your contributions in the Scottish Friendly UK Tracker Fund which, as its name suggests, is a fund designed to track the UK stock market. Find out more about the Scottish Friendly UK Tracker Fund here.
However we recognise that some investors prefer to take a little more risk by investing in an actively managed fund that aims to outperform the stock market. That's why we also give you the opportunity to invest in our UK Active Growth Fund. Find out more about the Scottish Friendly UK Active Growth Fund here.
Both funds aim to let you enjoy the potential benefits of capital growth on shares plus any dividend income which is payable and these are automatically reinvested in the fund to improve long-term growth potential.
Remember share prices go up and down on a daily basis and your original investment is not guaranteed.
What is a tracker fund?
A UK tracker fund is designed to closely track the performance of shares in the stock market, investing in some of the UK's leading companies including household names such as Tesco, BSkyB, BT and BP. Some UK tracker funds track as few as 50 companies whilst others track over 600. Your money will rise and fall with the movement of the stock market index and charges on the fund.
What is an actively managed fund?
An actively managed fund does not aim to track the stock market; it aims to beat it! Using the skills, experience and knowledge of a team of professional fund managers, the fund still aims to spread risk but will only buy shares in those companies the managers believe can outperform the market. By doing so, they aim to produce a superior return to that of a tracker fund, although there is no guarantee that they will, meaning there is more risk attached to this type of fund.
Start your regular savings habit from £15 a month
As a 10-year plan, the Scottish Friendly UK Select Investment Plan could encourage you to build up a healthy savings habit. Set up a Direct Debit and you may not even miss the premiums going straight into your plan every month.
Please remember, if you cash in your plan before the end of 10 years, you may not get back as much as you have paid in, particularly in the early years since the plan set-up charges are taken over the first 12 months.
How your investment could grow
At Scottish Friendly, our UK stock market funds offer most investors a cost-effective way to benefit from a real investment in the UK economy by pooling money with other investors and spreading it across a large number of investments in brands and companies that you know and deal with often on a daily basis. This way, costs are shared, risks are lowered and all the administration and paperwork is done for you.
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.
Historical and academic research shows that, despite the short term ups and downs, over longer periods such as ten years the stock market could provide one of the best methods of achieving a competitive return on your investment.
That's why, if you can afford to tuck money away for a longer period of time, such as the full 10 years, the stock market usually comes into its own.
What's more, by investing your money monthly you can aim to take advantage of any dips in the stock market investing when prices are low which helps to balance out investing when prices are high. In effect regular investing smoothes out the overall risks of the stock market when compared to investing with just a single lump sum.
Investing in the stock market is not without its risks because shares can rise and fall and you could get back less than you've paid in. Please remember that past performance is not a guide to future performance.
Source: Scottish Friendly. Based on someone aged 30 next birthday at outset saving £40 per month over 10 years. *Total amount invested £4,800. Figures shown are based on £25 a month invested tax-free and £15 a month invested tax paid. Based on current tax law which may change.
| Illustrated growth rates used for: |
lower rate | middle rate | higher rate |
|---|---|---|---|
| Tax-free part of investment | 5% p.a. | 7% p.a. | 9% p.a. |
| Tax paid part of investment | 4% p.a. | 6% p.a. | 8% p.a. |
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 investments grow. 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.
Life cover built in
Your Scottish Friendly UK Select Investment Plan automatically includes life cover as a condition of the tax benefits. You should consider whether life cover is appropriate for your financial needs. The amount of life cover depends on your age, health and monthly premiums.
Apply now
Applying is easy:
- Simply click on the Apply Online Now link, read the key features then complete and submit your application today.
- Or if you'd prefer to apply by post click on the Download Application Form link, to 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 a £15 High Street voucher. Don't forget to select which gift you would like on your 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.
