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Tax-Exempt Savings Plan

An affordable and tax-efficient way to save regularly for the future

Our new Tax-Exempt Savings Plan (TESP) is a simple product that lets you put a little away every month over the long term. At the end of your chosen term you get a tax-free lump sum to spend on whatever you want. You can save for yourself or for children or grandchildren and can use the proceeds to help fund a range of things – from holidays and university fees or maybe just a nest egg for the future. It’s a great way to build up savings steadily over time.

About our TESP

TESPs are only available from friendly societies and anyone over 16 can buy one. Our premiums are fixed at £25 per month and you can choose to save for between 10 and 25 years. When the policy pays out at maturity it is free from income tax and capital gains tax. Your money is invested in our with-profits fund in a mix of company shares, property, cash and fixed interest gilts and bonds. This spread of assets represents greater potential for growth than a deposit account offered by banks or building societies in return for a risk to your capital. At the end of your chosen term, the policy pays you a lump sum of money called the guaranteed maturity benefit plus any bonuses which are based on the performance of our with-profits fund. 

For you or a child

You can take out a policy for yourself or as a gift for the future for a child or grandchild. Children’s policies cannot mature before the child’s 16th birthday, so their policy might need to run longer than 10 years.

  • It might be suitable for someone who:

    • Does not currently have a friendly society tax-exempt savings policy;
    • Wishes to take advantage of a tax-efficient investment;
    • Expects to be able to maintain the monthly premiums for the full term of the policy, which will be your choice of between 10 and 25 years;
    • Would like to invest in a stocks and shares related investment but is not prepared to take the risk of investing directly into the stock market, and accepts the risks of investing in a with-profits fund that invests in equities, commercial property, and fixed interest securities (government and corporate bonds);
    • Does not need the policy to provide a fixed sum of life cover.

    You can read a summary of the key policy features in the application pack, available here.

  • It might be not suitable for someone who:

    • Already has a tax-exempt savings policy with a friendly society, which would prevent you from buying this one;
    • Will be unable to keep up the monthly premiums throughout the term;
    • Wants an investment which has no risks to capital or growth;
    • Wants a fixed amount of life cover.

    You can read a summary of the key policy features in the application pack, available here.

Apply today

Here at National Friendly we’re committed to making things as easy as possible for our members. For more information you can download a full application pack by clicking the button below, which contains all the details you need.

To read or print a PDF file, you must have the Adobe Acrobat® Reader installed: Download Adobe Acrobat 

You can then apply online by clicking the button below or if you prefer you can print, complete and return the application form contained in the above pack. 

Alternatively, you can apply over the phone or request an application pack to be sent by post by calling us on 0333 014 6244.

Calls from UK landlines and mobiles cost no more than a call to an 01 or 02 number and will count towards any inclusive minutes.

We’re open from 8am to 6pm Monday to Friday and your call will be recorded for training and quality purposes.

Why National Friendly

Here at National Friendly, we’ve been helping the nation to save, invest and look after its health for many decades. In fact, we’ve been growing together since April 1868. We’re proud of our past, and today we’re looking to the future and innovating a new generation of products and services that make our members’ lives easier, healthier and more rewarding. As a mutual society, we’re owned by our members, and so all of our profits are invested in improving member benefits and our service to you, instead of paying dividends to shareholders.