The Tax-Free Savings Plan - in action
To give you an idea of how our Tax-Free Savings Plan works, we have shown you below an example of the product and how it could fit an individuals needs. This is not advice, everyone’s needs and circumstances vary. If you are in any doubt about its suitability please contact our Customer Support team on 0800 195 9246 (8am – 6pm weekdays).
For you…
Name: Patrick
Age: Early Twenties
Occupation: Engineer
Patrick’s employment provides good benefits including a pension scheme. He decided to save any extra income into a cash ISA. He uses these savings as a fund to pay for his annual holiday. And, like most of us, he has aspirations – in his case he dreams of a new car and hopes to save enough to buy one in a few years time.
He does not have any long term savings except for the occupational pension and has no knowledge of stock market investment. But he does feel that direct investment into shares is far too risky but understands that you can make money from stocks and shares investment schemes over a long time which fits in with Patrick’s plan.
Patrick has recently had a pay rise that, after taxes, has left some spare income of £25 per month.
As he will use all his cash ISA allowance this year, he wants a further way to save that will be tax efficient so he invests £25 a month for 10 years in the Tax-Free Savings Plan. His ISA allowance is unaffected and in 10 years or so when the plan matures he will receive a tax free lump sum even if he is higher rate taxpayer.
For children or grandchildren…
Name: Sarah
Age: 51
Sarah considers herself to be a young grandmother and often enjoys looking after her 3 year old grandson, John. Sarah is married to Bill - a senior policeman and they are not short of some disposable income.
As a proud grand parent she is always talking about John but has a niggling worry that when he eventually goes to university, he might struggle financially. So she decides to start saving for John’s future.
After talking to John’s Mum and Dad, she discovers they have started a Child Trust Fund for him. However, Sarah would like to contribute herself for John’s future and decides to invest in the Tax-Free Savings Plan on behalf of her grandson. She saves £25 per month in the plan, that will mature when John is 18 years old and provide a valuable tax-free lump sum.
Guaranteed:
When your plan matures, you'll get back at least as much as you have paid in.
Not only will your hard-earned savings accumulate a tax free lump sum, but we guarantee that – whatever happens to stock markets or the world economy – you will receive back at least what you have paid into the plan when the policy ends. And in these uncertain days, that’s good to know.
Tax Efficient Savings for you – and for any child!
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Don’t forget, the Tax Free Savings Plan can be started for children too – many people use it as a way to save for their children or grandchildren.
Alternatively, why not find out more about our Tax free Saving Plan by calling us on 0800 195 9246 or order your FREE information pack.
