Sheffield Mutual the Yorkshire based friendly society has reported large increases in customer numbers. Policy sales were up 135% on October 2007, a feat the Sheffield puts down to investors being nervous about falling interest rates and being attracted to some of the guarantees offered by friendly society investment products.
The society also reported that 76% of new policies were for tax exempt savings plans. These plans are a little known policy that can offer tax free returns in addition to any ISA allowance. Tax exempt plans from building societies allow up to £25 per month or £270p.a. to be invested with a friendly society.
Friendly societies are mutuals like building societies, however they tend to offer investment and insurance products rather than banking products. As a consequence like other non cash investments friendly society bonds are not free from risk.
Filed under: General | Tagged: friendly societies, ISA, Sheffield Friendly Society, Tax Exempt Savings Plan
