If the Tax Exempt Savings Plan is in the child’s name then the proceeds will be paid to them.

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

If the premium payers circumstances change and they are unable to continue the payments the child may receive back less than has been invested, especially in the early years.

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 your client decides to invest in a Healthy Investment Tax Exempt Savings Plan for a child, they 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 client's investment. Smoothing may not protect against long term or sustained falls in the value of investments.

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

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 with life cover, please click here.

The life cover consists of the original guaranteed sum assured (this is based on the amount you choose to save and the age of the child) 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 for them. The life cover will start on receipt of your first premium we receive.

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

Every year we may add a bonus to the Tax Exempt Savings Plan to increase the guaranteed amount they will receive on maturity. The bonuses are calculated from the original sum assured as a percentage the Board have decided. 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 the policy matures they may also receive a terminal bonus to further increase their maturity amount. The terminal bonus isn’t guaranteed and can be increased, decreased or removed altogether at any time.

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 your client might receive back based on different investment scenarios. It also helps them understand the nature, risks, costs, potential gains and losses of this product and to help you and them compare it with other products.

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

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The Consumer Duty ensures that the needs of our members and your clients are always put first. As a mutual we’ve been committed to doing the right thing throughout our long history, however this new FCA initiative is, we believe, going to drive up standards across financial services.

As part of our commitment to supporting you, the advisers we work with, our Consumer Duty Outcome Assessment is available to help you demonstrate that by recommending our products you’re doing the right thing for your client.

Download our outcome assessment for our Children's Tax Exempt Savings Plan here.

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