the tax break explained
Easy save lets you take advantage of a tax break that’s exclusively available through friendly societies. This tax break means that there is no tax to pay on any growth in your plan.
With an easy save plan, you can save up to £25 per month or £270 annually on top of your ISA allowance – and there's more good news, the tax man won’t get his hands on a penny of it at the end . It’s an easy way to build a tax free cash lump sum – remember, the tax treatment of the plan could change in the future..
we guarantee to pay you at least your money back
Easy save offers the benefits of both investment growth potential (your money is invested in the Engage Mutual With Profits Sub Fund) and the reassurance of a guaranteed minimum cash sum at the end of your chosen term. This means you’ll get at least what you’ve paid in, even if the investment fund value has fallen – provided:
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you’ve paid all the premiums due
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the plan has reached the end of the premium payment term
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and you cash your plan within 28 days after the end of the payment term.
It’s also worth bearing in mind the following:
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if you close your plan outside the guarantee period you could get back less than you’ve paid in
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if you cash in before you pay 1 year’s premiums you will not get anything back
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if you choose to surrender your plan early a Market Value Reduction (MVR) may be applied which would reduce the amount you receive
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if, within 10 years, the policy is closed or premiums stop, income tax may be payable if the final value of the policy exceeds the premiums paid and any age allowance may be affected
how your premiums are invested
With an easy save plan, your money buys units in the Engage Mutual With Profits Sub Fund– this, in turn, invests in collective investment schemes, which are actively managed by external fund managers. These may hold a range of investments including shares, fixed interest securities, commodities, property, currency, cash and other structured investments. The Engage Mutual With Profits Sub Fund may also invest directly in fixed interest securities.
Every year we declare a bonus which is based on the performance of the fund so far and how we believe it will perform in the future. Of course, you should bear in mind that future bonuses depend on investment performance and neither of these are guaranteed.
smoothed returns
Investment returns achieved by the With Profits Sub Fund will vary over time and there will be periods when investments may do very well, but other periods when they may not perform as well. The Engage Mutual With Profits Sub Fund uses a process known as ‘smoothing’ to help smooth out some of these short term variations in performance.
interested?
£20 worth of Marks & Spencer vouchers when you start a plan, plus an extra £10 when you do this online. Click here to apply.
terms and conditions apply.
