Adult - Tax Exempt Savings Plans

Unique to friendly societies like ours, Tax Exempt Savings Plans allows you to take advantage of an extra government tax break by saving on a regular basis, helping you to build a really useful cash sum for you or your children.

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Get into the saving habit

With our Healthy Investment Tax Exempt Savings Plan you’re committed to paying in the same amount every month - which means that you can build your savings gradually over time. You can invest anything from £10 up to a maximum of £25 a month - if you want to invest more, then our Standard Savings Plan might be for you.

A guaranteed return

When you take out your policy we’ll tell you the absolute minimum you’ll get when the plan matures (as long as you’ve kept up all of your contributions of course). This is called your sum assured. We also give regular bonuses every year and add them to the value of your policy. These can never be taken away - and you may also get a final bonus at the end of your term. The level of bonus added each year is not guaranteed and can change.

A tax exempt pay out

Only friendly societies are able to offer these kinds of plans thanks to a unique government tax break. When the policy matures none of the money you receive will be taxed, and the fund that the money is invested in is also free of UK income and capital gains tax. The Savings Plan is designed to provide you with a tax exempt payout.

This plan includes life cover, meaning that if you die before the plan ends your estate will receive the guaranteed sum assured plus bonuses (if all contributions are up to date). You won’t have to answer any medical questions.

Choose how long you want to save for - anything from 15 years to 25 years. It’s the perfect way to plan for a big event that’s coming up in the future. Whether it’s the holiday of a lifetime or an anniversary surprise, you can start saving now.

Put a modest amount away, every month for the future. You’ll be growing your funds gradually, safe in the knowledge that you won’t be paying tax on the money you make. The guarenteed sum assured and life cover gives you peace of mind.

A traditional way of saving - just like the saving schemes you remember as a child! Your money is invested in Healthy Investment's Ethical With-profits Fund, which is a mix of different assets which are actively managed to maximise the potential for growth whilst managing risk.

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Important Points

Is it for me?

Any UK resident can invest in a Healthy Investment Tax Exempt Savings Plan providing the plan matures before they are 65.

You might consider this plan if you already have savings in a bank or building society and you are now looking to put some money into an investment which includes life cover, has some risk but potentially higher returns and the proceeds of which are paid tax free.

Save from as little as £10 per month or a maximum of £25 per month (or £270 per year).

You can have your Tax Exempt Savings Plan mature on a specific date, or simply select a term between 15-25 years, providing it matures before your 65th birthday.

Depending on the term you choose you should see this as a medium or long term investment.

Things to think about

Although the Tax Exempt Savings Plan grows through bonuses, bonus rates are not guaranteed and in exceptional circumstances could be nil.

If your circumstances change and you are unable to continue your payments, you may receive back less than you have invested and in the first year you are unlikely to receive back anything.

Inflation will reduce what the proceeds of the policy will be able to buy in the future.

Tax rules can change at any time.

If you have any doubt whether this Tax Exempt Savings Plan is right for you, you should seek financial advice.

Our Ethical With-profits Fund

If you decide to invest in a Healthy Investment Tax Exempt Savings Plan, you will be investing into our Ethical With-profits Fund, which includes a mix of stocks and shares, fixed interest bonds, commercial property and cash deposits. The mix of assets held changes over time.

We avoid investing in companies in certain industries and those whose activities are not in accord with our members’ personal values. Examples are the tobacco, armaments, alcohol and fur manufacturing industries, gambling and pornography providers and companies that manufacture products or ingredients that have been tested on animals.

We seek to invest in companies that are explicitly involved in activities that benefit society and the environment. Examples are companies that are tackling climate change, promoting a low carbon economy, promoting diversity and equal opportunities, and improving energy efficiency.

Our vision is to invest for a better future, deliver good financial returns and make a difference to society and the environment.

The Society aims to provide a consistent return by smoothing the investment return to avoid volatile fluctuations in the value of your investment. Smoothing may not protect you against long term or sustained falls in the value of investments.

For further information on our Ethical With-profits Fund please click here.

Bonuses and benefits

Reversionary bonus
A reversionary bonus is an annual bonus which, once added to your Tax Exempt Savings Plan, can never be taken away.

Reversionary bonuses are expressed as a percentage of your guaranteed sum assured so it cannot be compared to a rate of interest.

These are the reversionary bonus rates we've previously applied to our Tax Exempt Savings Plan:

2023 - 1.25%
2022 - 0.65%
2021 - 0.65%
2020 - 0.65%
2019 - 0.75%
2018 - 1.25%
2017 - 1.25%

The level of bonus depends on investment performance, our expenses and our solvency margin over the previous year as well as the Board's expectations of future performance. The level of bonus also reflects the capital and bonus guarantees. The rate of bonus can change every year and could in exceptional circumstances be nil.

All reversionary and interim bonus rates are net of charges. The bonus rate declared is the bonus rate you receive.

Interim bonuses
Unlike declared reversionary bonus rates, which can never be changed, interim bonus rates can be increased or reduced by the Board at any point during the year. The current interim bonus rates are based on a prudent view of future investment performance, solvency and expenses over the year. Interim bonus is paid on policies paid out since the last reversionary bonus declaration on both maturity and death.

Terminal bonuses
A terminal bonus is an additional final bonus which may also be added on maturity or in the event of the death of the investor. The rate of final bonus can be changed at any time or can be withdrawn altogether.

Life cover without any medical questions
The Healthy Investment Tax Exempt Savings Plan includes life cover throughout the term of the policy.

If you would like a Tax Exempt Savings Plan without life cover, please click here.

The life cover consists of the original guaranteed sum assured (which is based on the amount you choose to save, the chosen term and your age) plus any bonuses already added to your policy.

We do not ask any medical questions when you choose to take out a Tax Exempt Savings Plan. The life cover will start on receipt of your first premium.

Guaranteed return

The agreed sum assured you receive when you take out a Healthy Investment Tax Exempt Savings Plan is the absolute minimum you are guaranteed to receive at the end of your chosen term, providing all the premiums have been paid.

Every year we may add a bonus to your Tax Exempt Savings Plan to increase the guaranteed amount you will receive on maturity. The bonuses, which are decided by the Board, are calculated as a percentage of your original sum assured. Once a bonus has been declared and added to your policy it can never be taken away.

Bonus rates can change every year and could in exceptional circumstances be nil. They depend on investment performance and other factors.

When your policy matures you may also receive a terminal bonus to further increase your maturity amount. The terminal bonus isn't guaranteed and can be increased, decreased or removed altogether at any time.

What could I get back?

The level of bonus depends on investment performance, our expenses and our solvency margin over the previous year as well as the Board’s expectations of future performance.

The Key Information Document includes examples of what you might receive back based on different investment scenarios. It also helps you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products.

Download our latest Key Information Document for our Tax Exempt Savings Plan.

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