Introduction

These monthly savings plans are offered by Friendly Societies and Life Insurance companies. Provided you do not cash them in before 10 years, there is no liability to income or capital gains tax on the profit you make - even if you are a higher rate Income tax payer.

You can choose to save over a fixed term of 10 and 35 years in the 'Endowment Plan', or you can choose our 'Whole Life Plan' where you will only pay premiums for 10 years, but you will then have the option of leaving your savings to grow for as long as you want without having to pay any more premiums.

HM Revenue & Customs do not set any limit on premiums. We pay tax on the interest and capital gains we get on your investment. However, because we are a Friendly Society, we offer the same plans on a tax-exempt basis for premiums of £25 per month - these pay higher bonuses than on our ordinary regular savings plans - please (see Tax-Exempt Savings Plans for more information if you are not already using your allowance.