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Tax-efficient investments for a better tomorrow

Just imagine what you could do with a nice lump sum in 10, 20 or 25 years’ time. Put it towards a new car or that round-the-world trip you’ve always dreamed of. Or maybe something special for you and your family.

We all have different needs at different times in life. Our Family Bond is a simple way to invest over the long-term if you’re 16 or over. And even better, when you're ready to cash your bond in, your final lump sum will be free from income tax and capital gains tax as long as you’ve paid in for 10 years or more.*

Our Family Bond is invested in stocks and shares because we believe there is good potential for growth over the long term. Remember that its value can fall as well as rise. This is normal for this kind of investment, but it does mean that you could get back less than has been paid in.

What is a Family Bond?

A Family Bond is a Tax-Exempt Savings Plan that invests in stocks and shares and is unique to friendly societies. It provides an easy way to invest regularly and the money your investment earns is free from income tax and capital gains tax, as long as you invest for at least 10 years.*

*Please remember that tax advantages depend on your individual circumstances, and could change in the future.

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Our Family Bond

Here’s how it works:

  • You can invest if you’re aged between 16 and 74
  • Choose how long you invest for, from 10 to 25 years
  • You can have a Family Bond as well as an ISA
  • Invest £25 a month or £270 a year unless you're already using your Tax-Exempt Savings Plan (TESP) allowance of £25 a month or £270 a year to the full
  • The account invests in stocks and shares because we believe that this is the best way to make money grow over the longer term – its value can fall as well as rise
  • Includes some life cover.

See the Important Information booklet for details

Experienced and trusted

We have 40 years' experience and look after over £7 billion of family money for over 2 million customers.

Tax-efficient

If you invest regularly in your Family Bond for at least 10 years you won’t pay any income tax or capital gains tax on the lump sum you get back in the end. Remember tax advantages depend on individual circumstances. Also, tax rules may change in the future.

Good potential for growth

Our Family Bond invests in stocks and shares so has good potential to grow over the long-term. But because the value can fall as well as rise, we need to remind you that you could get back less than was paid in.

Owned by you

Proud to be a mutual, we’re owned by you, our customers, so everything we do is genuinely about putting our customers first.

Easy and affordable

With our Family Bond, you invest just £25 a month for at least 10 years. You can do this as long as your maximum amount is not already being invested in a Tax-Exempt Savings Plan with OneFamily or any other friendly society.

Why choose our Family Bond?

Some more important things to note

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Our Family Bond is invested in a tax-exempt fund

The final sum you receive will be free from Income Tax and Capital Gains Tax as long as you make payments for at least 10 years. The tax advantages of our Family Bond depend on your individual circumstances, and could change in the future.

The Family Bond is a ‘qualifying policy’

If you have one of these policies, regular yearly or monthly payments will be made and the policy will have an initial payment term of at least 10 years. The policy will also include life cover. There’s an overall limit of £3,600 a year on the amount you can pay into qualifying policies. So you’ll need to check if you have other policies like this. You can find out more about this limit on the Family Bond application pages or in the application pack.

Please read the Important Information Booklet »

The Family Bond invests in the Family Global Fund

This currently invests in the Family Balanced International Fund.

Download the factsheet to find out more »

Questions and answers
about our Family Bond

How do I know if I’m eligible for a Family Bond?

If you’re aged between 16 and 74 years inclusive, you’re eligible for a Family Bond.

How much can I invest?

Because of the favourable tax treatment, the Government has set maximum limits of £25 a month or £270 per year. You can make these payments by Direct Debit. If you already have one or more TESPs with us you can still apply for another one, and invest as little as £10 a month or £100 a year, as long as you don’t exceed the maximum limits.

The Family Bond is a qualifying policy. There is an overall limit of £3,600 per year that can be paid into qualifying policies that you hold. If you have one of these policies, regular yearly or monthly payments will be made and the policy will have an initial payment term of at least 10 years. The policy will also include some life cover.

What are Tax Exempt Savings Plans (TESPs)?

Tax Exempt Savings Plans (TESPs) are a way you can save tax-efficiently over the long term. They provide a tax-free lump sum at the end of the payment term you choose; payments must be made for at least 10 years. TESPs are exclusively available from friendly societies, like OneFamily.

How long can I invest for?

The payment term you choose can be between 10 and 25 years, but they must be in full years. If it hasn’t already been cashed in, the Family Bond will mature on your 85th birthday.

What if I change my mind?

You have 30 days to cancel the Family Bond. If you wish 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.

What happens if I want or need to cash it in early?

If you cash in the Family Bond in the first year, it will have no value. From year two to the Family Bond’s 10th anniversary, you will get back the policy value less a £50 charge.

Please remember if you cash in your Family Bond before its 10th anniversary, you may have to pay tax on any growth. This type of investment has to be invested for, at least, 10 years to be tax-efficient.

What are the charges?

There is an annual management charge of 1.95%. There may also be expenses deducted from the Family Balanced International Fund, in which the Family Global Fund invests. This may change, but the effect on the Family Global Fund is currently estimated to be no more than 0.2% of its value each year.

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 amount of life cover. Please refer to 'Charges' in the Important Information booklet.

What about tax?

The Family Bond is invested in a tax-exempt fund, although income received by the fund may be taxed before we receive it.

The final sum you receive will be free from Income Tax and Capital Gains Tax, as long as you make payments for at least 10 years. The tax advantages of the Family Bond will depend on your individual circumstances and could change in the future.

Are TESPs covered by the Financial Services Compensation Scheme (FSCS)?

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

Get in touch

TALK TO US

You can also apply over the phone by calling us free on:

0800 731 7433*

We'll be here from 9am to 7pm Monday to Friday and 9am to 1pm on a Saturday.

*We might record your call to help improve our security and training. We hope you don't mind. Calls are only free from UK landlines.

REQUEST A PACK

If you'd prefer to apply in writing or discuss the Family Bond with your nearest and dearest, we'll be happy to send you a pack.

Request a pack »

To make sure the Family Bond is right for you please read the Important Information booklet and fund factsheet...

Important Information booklet

Family Global Fund factsheet

Apply online

Once you've read and understood the Important Information booklet and fund factsheet, and you're happy to choose the Family Bond, you can apply online in a matter of minutes.

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As OneFamily does not provide Advice, please read all the product info and remember your capital is at risk.

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