ravedave Posted April 10, 2010 Share Posted April 10, 2010 £25 per month tax free I was thinking of taking out one of these - never heard of it before and was wondering if it is any good. You need to commit for 10 years. Is this type of think only available with a mutual society? Any one know or have any other details on these inc. their situation with the FSA scheme for covering £50k (not that I'll get near that amount...). I'll not miss £25pm and in 10 years it might be a nice cheque landing on the doormat. Worth it? Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted April 10, 2010 Share Posted April 10, 2010 £25 per month tax free I was thinking of taking out one of these - never heard of it before and was wondering if it is any good. You need to commit for 10 years. Is this type of think only available with a mutual society? Any one know or have any other details on these inc. their situation with the FSA scheme for covering £50k (not that I'll get near that amount...). I'll not miss £25pm and in 10 years it might be a nice cheque landing on the doormat. Worth it? They've been around for many years, my dad used to do them. I don't like having lots of little accounts dotted about so I haven't done one. Quote Link to comment Share on other sites More sharing options...
Cicero Posted April 10, 2010 Share Posted April 10, 2010 (edited) £25 per month tax free I was thinking of taking out one of these - never heard of it before and was wondering if it is any good. You need to commit for 10 years. Is this type of think only available with a mutual society? Any one know or have any other details on these inc. their situation with the FSA scheme for covering £50k (not that I'll get near that amount...). I'll not miss £25pm and in 10 years it might be a nice cheque landing on the doormat. Worth it? No, not really. Most of these schemes are only available through "friendly societies" which invest the money on a "with profits" basis (read huge commissions and fees). By the time the commissions and fees have been deducted, you'll be lucky to have had any real growth whatsoever after inflation. IMVHO, put your £25 p/m investment into a cash ISA, or an index tracking ISA if you feel a bit braver (latter should have much lower fees than a friendly society scheme). Edited April 11, 2010 by urban commando Quote Link to comment Share on other sites More sharing options...
Toilet-Currency Posted April 10, 2010 Share Posted April 10, 2010 For the avoidance of doubt - this is not a bank savings account - it's slightly misleading the way they refer to the fact that it doesnt affect your ISA allowance (which is indeed true), as though it were one. Agree with the other posters- the payout from 'with profits' schemes are often opaque Quote Link to comment Share on other sites More sharing options...
jonb Posted April 11, 2010 Share Posted April 11, 2010 £25 per month tax free I was thinking of taking out one of these - never heard of it before and was wondering if it is any good. You need to commit for 10 years. Is this type of think only available with a mutual society? Any one know or have any other details on these inc. their situation with the FSA scheme for covering £50k (not that I'll get near that amount...). I'll not miss £25pm and in 10 years it might be a nice cheque landing on the doormat. Worth it? I'd forgotten about those. I looked at it about 10 years ago and decided it wasn't worth it. It is an equity investment, and if you are a basic rate tax payer, these are effectively tax free anyway, except for dividend tax which nobody can get back. I agree with the other comments about with profits investments. Quote Link to comment Share on other sites More sharing options...
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