Tax Exempt Savings Plans [TESPs]

A question about : Tax Exempt Savings Plans [TESPs]

what do people here think of these plans, exclusively available via Friendly Societies?

Under current legislation the maximum individual investment in a tax exempt savings plan, which is a type of qualifying policy with a special tax status, is Ј25 per month or Ј270 annually.

this is in addition to an ISA allowance.

Best answers:

• Why is it Ј270 a year and not Ј300?
  Whether Ј270 or Ј300, what are the benefits to me stashing away, in a tax-shelter, that amount of money in addition to my ISA?
  If I did have Ј270 or Ј300 in addition to my annual ISA allowance, why would I want to invest them with a TESP, rather than putting the same money into a pension (with my employer, and/or a SIPP)?
  How many people have got more than their annual ISA allowance to invest?
• if you contribute in one annual lump sum, the limit is Ј270.
• it would be in addition to your ISA. just an additional investment. if you 'stashed' that away, you'd have more money when it matures.
  it wouldn't need to be tied-up until retirement, as would a SIPP or other pension.
  and an awful lot, i would imagine, of those that are committed to saving for the future.
• this is the second i've created, other than the one asking where the first one had gone. just thinking there could be some proper discussion here, without any reason for bitterness.
• "So if I contribute Ј25 a month, I can stash away Ј300 a year?".
  that is my understanding, yes. seems strange to me, too.
• good question. mine are set to run for 10 years.
• the idea was not to mention referrals
• i started a new thread so discussion could be had. but you seem determined to fight regardless
• i am not trying to persuade people that an endowment policy is a good thing, no.
  & to be fair, i may have come to Friendly Societies from an unusual route, but the people i know who are fellow members are very much "the type" to maximise their use of their ISA allowances each year.
• That is a complete disgrace and should be banned. It is unethical to get people who dont know what they are talking about selling products they do not understand.
• i know what a tax wrapper is. what do you mean?
  "you ignore them to carry on creating threads and posts promoting them." not true. i started this thread thinking that there could be a debate without reference to referrals. can you not see that?