Tax Exempt Savings Plans
Tax Exempt Savings Plans (TESPs) offer a tax free savings allowance (up to £25 per month) in addition to your Individual Savings Account (ISA) £5,640 cash threshold. They are offered by Friendly Societies giving you a tax efficient way of maximising your yearly saving allowance. TESPs are available either as a Child Tax Exempt Savings Plan or an Adult Tax Exempt Savings Plan and they pay-out a lump sum at the end of the agreed term.
Choose a type of savings account to compare from the list below
Compare tax exempt savings
Scottish Friendly Scottish Bond
Scottish Friendly MiBond
Child tax exempt savings
These accounts are long-term, tax-efficient savings plans that are specially designed for an adult to save on behalf of a child, tax-free. Created as an alternative to Child Trust Funds they allow you to save from £15 - £250 per month, however, you must save for a minimum period of 10 years. Child Tax Exempt accounts are available from Friendly Societies. See below for some of the latest offers
Compare child tax exempt savings
Scottish Friendly Child Bond
|Shepherds Friendly Society|
Shepherds Young Saver Plan
More about tax exempt saving
Available through the so called 'friendly societies', a tax free savings plan - or TESP - offers you another way, on top of your annual ISA limit, to keep the interest you earn on your savings away from the clutches of the taxman.
Deemed to be an ethical or 'family friendly' way to save, TESPs often offer add-on benefits like life insurance or discounts on other banking products. Although the investments are usually linked to the stock market - meaning the money could be liable to go down as well as up - you can often find accounts which will guarantee a minimum return of the amount you put in.
TESPs tend to operate as a long term regular savings account - with terms of 10 years most common. When the account matures you get a lump sum payment of everything you've saved plus all of your interest, in full, without being looted by Her Majesty's infamous Revenue and Customs.
Usually, you can't withdraw any of the money in the account before you reach the end of the term. However, sometimes accounts offer you the chance to withdraw a certain percentage of the total at a pre-agreed interval.
There are both adult and children's TESPS available. With the former you are limited to saving a maximum of £25 per month. With the latter, some accounts allow you to save up to £100 per month.
With children's TESPs - sometimes known as family savings accounts - you can often choose to have the account mature on a specific date such as the child's 21st birthday. A minimum of 10 years is required though.
Find out about the different savings options available to you.
Help / FAQs
- A basic guide to savings accounts
- ISA savings guide
- How to save when interest rates are low
- Cash ISA vs Investment ISA
- Why it pays to switch your savings account
- Investment ISA guide
- Savings: the current state of the market
- Business savings guide
- Your guide to children's savings
- How to save for your retirement