Family Bonds FAQ

You can invest either £25 a month or £270 a year in a Family Bond, if you don't already have a Tax Exempt Savings Plan (TESP).

This limit is set by the UK government.

If you do already have a TESP or qualifying policy:

• If you already have one or more TESPs, you can still apply for another as long as you're not already paying in £25 a month or £270 a year in total. You can invest from £10 a month or £100 a year in another TESP, as long as this doesn't take you over the total limit of how much you can pay into TESPs (£25 a month or £270 a year).
• If you're already paying into a qualifying policy, which is a type of life insurance with special tax status, you can still open a OneFamily Family Bond. Please be aware that the Family Bond is a qualifying policy so you need to make sure opening one wouldn't take you over the £3,600 a year limit you can pay into qualifying policies.

Got the answers you need? Go to the main Family Bonds page to open a Family Bond

Our Family Bond comes with some life cover, which is payable after you've invested for a year and until the end of the fixed payment term.

The life cover pays out 75%* of either the total payments that you would have made during the fixed term that you chose when you opened the bond or the value of the bond – whichever is higher at the time of your death. Therefore, the value of the life cover depends on how long you choose to invest for. Life cover isn't payable after the initial fixed-term ends.

You must have kept paying in regularly – either monthly or yearly, depending on the option you chose when you opened the bond – for the life cover to be payable.

*The amount of life cover you receive will be reduced by 2% for every year older than 56 you are. For example, if you are 56, you will receive 73% of the payments you would have made during the initial payment term, if you are 57, you will receive 71% and so on.

Got the answers you need? Go to the main Family Bonds page to open a Family Bond

Yes, but you may not get back what you've paid in and you may have to pay tax on any growth.

• If you close your Family Bond in the first year, it will have no value so you won't get any money back.
• If you close it from year two up to year 10, you will get back the policy value but you may need to pay tax on any growth. You'll also be charged a £50 early withdrawal charge.

Family Bonds, like all Tax Exempt Savings Plans, have to be invested for at least 10 years to be tax-efficient. That means after 10 years of paying money in regularly, you won't pay any tax on any growth.

Got the answers you need? Go to the main Family Bonds page to open a Family Bond

Anywhere between 10 and 25 years. The initial payment term you choose must be in complete years.

If you haven't already cashed it in, your Family Bond will mature on your 85th birthday.

Got the answers you need? Go to the main Family Bonds page to open a Family Bond

You can open a Family Bond if you're a UK citizen and aged between 16 and 74 (inclusive). You don't need to have children to open one.

Got the answers you need? Go to the main Family Bonds page to open a Family Bond

We charge an annual management charge of 1.95%.

There’s also a charge for life cover, which we take each year on the Family Bond’s anniversary by cashing in units. We only take this if the value of the Family Bond is less than the value of the life cover.

There may also be expenses taken from the Family Balanced International Fund, which the Family Global Fund invests in. The effect on the Family Global Fund is estimated to be no more than 0.2% of its value each year, although this could change.

Please refer to 'Charges' in the Important Information booklet and the Key Information document to find out more.

Got the answers you need? Go to the main Family Bonds page to open a Family Bond

No. As long as you keep up with the regular payments and leave it invested for at least 10 years, you won't pay any Income Tax and Capital Gains Tax on any money you make.

That's because the Family Bond is a Tax Exempt Savings Plan, meaning it's invested in a tax-exempt fund. Income received by the fund may be taxed before we receive it.

The tax advantages of the Family Bond will depend on your individual circumstances and could change in the future.

Got the answers you need? Go to the main Family Bonds page to open a Family Bond

Contact us on 0808 196 2625 to ask for an extension form. We may even be able to extend your bond over the phone.

Take a look at our guide to extending your Family Bond.

The Family Bond is a Tax Exempt Savings Plan (TESP).

This type of savings product is only available from friendly societies, like OneFamily.

Money you pay into TESPs is invested in tax-exempt funds, which means that you won't pay any Income Tax and Capital Gains Tax on any money you make, as long as you keep paying in regularly and don't take your money out within 10 years.

Got the answers you need? Go to the main Family Bonds page to open a Family Bond

After opening, you have 30 days to cancel the Family Bond.

If you would like to cancel, please complete the cancellation notice included in your Welcome Pack. Any money you have paid in will be returned to you in full.

Got the answers you need? Go to the main Family Bonds page to open a Family Bond

Yes, TESPs are covered by the Financial Services Compensation Scheme (FSCS).

This means you may qualify for compensation from the FSCS if we fail or go bankrupt.

Circumstances vary, but most types of long-term investments like the Family Bond are covered for 100% of the claim with no upper limit.

If you’d like more information about the FSCS, please visit www.fscs.org.uk.

Got the answers you need? Go to the main Family Bonds page to open a Family Bond