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Understanding your OneFamily savings contract

If you, or a family member, has a savings contract (either a Tax-Exempt Savings Plan (TESP), regular savings policy or plan, or single premium contract) with OneFamily, the below information should answer your questions.

If it doesn't, give us a call on 0344 8 920 920. We’re here Monday to Friday 9am – 7pm, and on Saturdays 9am – 1pm, UK time. Calls may be recorded and monitored for training purposes.

We don't currently sell savings contracts, the below information is for customers who already hold one.

What are Tax Exempt Savings Plans (TESPs)?

TESPs are a type of regular savings product only available from friendly societies, like OneFamily.

They are “qualifying policies”, which is basically a form of life insurance contract that enables you to invest your money tax free.

The money you pay into a TESP 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.

What are regular savings policies/plans?

Regular savings policies, also known as a regular savings plans, are a type of savings plan designed to be used after you’ve used all your ISA and Tax Exempt Savings Plan (TESP) allowances.

Regular savings policies are a type of “qualifying policy”, which means they include some life insurance and basic tax payers generally won't need to pay further tax on benefits, as long as the rules are met.

You can invest up to £3,600 per year in a regular savings policy. However, this is the overall limit for how much you can pay into all qualifying policies in your name, so it includes any money you’re paying into Tax Exempt Savings Plans and any other qualifying policies.

 

What are single premium contracts?

Single premium contracts are a type of life insurance where you also benefit from your money being invested.

As the name suggests, rather than paying premiums over time, you pay your premiums in one lump sum.

There are some tax advantages to single premium contracts and, as they're classed as life insurance contracts, the money in them isn't included in means testing for things like care fee support applications.

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