Looking for a simple, tax-free way to save for the future? A Tax-Exempt Savings Plan offers a guaranteed return with the potential for extra bonuses — all while helping you stay disciplined with regular contributions. It’s a great option for long-term savers who want peace of mind, steady growth, and a little something extra when the plan matures.
A Tax-Exempt Savings Plan is a straightforward way to build a tax-free lump sum over time. By making regular payments over a 10-year period, you'll receive a guaranteed minimum return, with the potential for additional growth depending on the performance of the investment fund.
Enjoy long-term savings growth with the possibility of tax-free bonuses along the way, all within the limits set by HMRC. You can start with as little as £9 a month (or £100 a year), up to a maximum of £25 a month (or £270 a year). Simply choose the amount that works for you and stick with it for the full term.
- Guaranteed returns: As long as you keep up your regular payments, your minimum sum assured is locked in.
- Tax-free bonuses: On top of your guaranteed sum, you could receive extra bonuses depending on the fund’s performance — all free from tax.
- Optional life cover: You can choose to add life cover for added peace of mind — though it slightly reduces your final payout.
- Perfect for milestones: Ideal if you want your investment to mature in line with a special date, like a birthday, anniversary, or future expense.
- Consistent saving: It’s a great option if you prefer the security of a fixed-term plan over riskier, more flexible investments.
- Open to most: Anyone under 60 can apply (or up to 75 if you choose not to include life cover).
You commit to saving a set amount, between £9 and £25 per month, for 10 years. Your money is invested in a mix of bonds, stocks, shares, and property, with the potential for growth over time.
If life takes an unexpected turn and you need to access your savings early, you can, as long as it's after the first year. Just keep in mind that cashing out early might mean getting back less than you’ve put in.
Want extra protection? You can include optional Life Cover, which pays a lump sum to your loved ones if you pass away. Just note that including life cover will slightly reduce the final amount they receive.
Please note that we do charge a small management charge for the administration of your Tax-Exempt Savings Plan, please refer to the Key Information Document for more information.
At a glance
Save a fixed monthly amount for 10 years
Choose a monthly payment between £9 and £25
Guaranteed lump sum at end of term
Additional bonuses may apply depending on fund performance
Tax-free lump sum
Optional life cover (reduced guaranteed lump sum)
This product is protected by the Financial Services Compensation Scheme (FSCS) up to 100% of your claim.
Tax-Exempt
Additional tax-free allowance on top of your annual ISA allowance.
Life cover option
You can choose to add life cover for added peace of mind.
Tax-free bonuses
You could receive extra bonuses depending on the fund’s performance — all free from tax.
Please review the documents below to ensure the Tax-Exempt Savings Plan is suitable for you. Be sure to read the relevant documents based on whether or not you require Life Cover.
The table shows how different monthly contributions affect the overall investment and the guaranteed return after 10 years.
Monthly (or Yearly) premium*: The fixed amount you choose to pay each month (or year).
Total investment (10 Years): The total amount you’ll contribute over the full 10-year period.
Minimum maturity value: The guaranteed lump sum you will receive at the end of the 10 years, regardless of investment performance.
For example, if you contribute £18.50 per month, your total investment over 10 years will be £2,000, and you will be guaranteed to receive at least £2,235 at maturity (before any bonuses).
*A higher monthly premium will lead to a larger guaranteed payout.
| Monthly premium | Yearly premium | Total investment (10 Years) | Minimum maturity value |
| £9 | £100 | £1,000 | £1,085 |
| £14 | £150 | £1,500 | £1,690 |
| £18.50 | £200 | £2,000 | £2,235 |
| £20.50 | £220 | £2,220 | £2,475 |
| £25 | £270 | £2,700 | £3,020 |
The table shows how different monthly contributions affect the overall investment and the guaranteed return after 10 years.
Monthly (or Yearly) premium*: The fixed amount you choose to pay each month (or year).
Total investment (10 Years): The total amount you’ll contribute over the full 10-year period.
Minimum maturity value: The guaranteed lump sum you will receive at the end of the 10 years, regardless of investment performance.
For example, if you contribute £18.50 per month, your total investment over 10 years will be £2,000, and you will be guaranteed to receive at least £2,000 at maturity (before any bonuses).
*A higher monthly premium will lead to a larger guaranteed payout.
| Monthly premium | Yearly premium | Total investment (10 Years) | Minimum maturity value |
| £9 | £100 | £1,000 | £1,000 |
| £14 | £150 | £1,500 | £1,500 |
| £18.50 | £200 | £2,000 | £2,000 |
| £20.50 | £220 | £2,220 | £2,220 |
| £25 | £270 | £2,700 | £2,700 |
At the end of the 10 year term, you will receive your maturity value.
This comprises of:
- The guaranteed sum assured (outlined in the 10-Year Savings Summary).
- Any annual bonuses that have been declared during the term.
- There may also be a terminal bonus.
Bonuses will be declared on a basis recommended by the Actuary, as a result of the investment performance and annual valuation.
If you pass away before your policy reaches maturity, the amount paid out to your estate will depend on whether your plan includes life cover or not.
Without Life Cover
If you die during the term of your policy, all your premiums paid up to the date of death will be refunded, along with interest at the Bank of England base rate, or the surrender value, if this is higher.
With Life Cover
Provided all premiums have been paid, the plan guarantees a sum assured payable upon death, along with any declared bonuses. A terminal bonus may also be included.
The plan is designed for individuals who are UK residents and want to save regularly in a tax-efficient way.
Anyone under 75 can apply for a Tax-Exempt Savings Plan, but age limits apply if you're looking to include life cover:
- With life cover: You must be under 60 years old at the start of the plan.
- Without life cover: You can apply up to age 75.
Your premiums payments will need to be made by Standing Order. Once you have selected your premium and your application has been processed, we’ll send you a welcome pack along with instructions on how to set up your Standing Order.
The policy runs for a fixed term of 10 years. During this time, you cannot make partial withdrawals, and neither can you change the premium amount or the term.
You may choose to stop paying your premiums and surrender your plan; however, please note:
- You will lose the guaranteed minimum return and any life cover included.
- You may receive less than you have paid in, especially in the early years.
- If you surrender the plan within the first year, you will receive nothing back.
If you miss a premium, you’ll have 30 days to make the payment. After that, the policy will be closed and, if a surrender value is available, it will be paid to you.
Need to speak to someone about our Tax-Exempt Savings Plan?
Our friendly customer service team is available to discuss any questions.
or email insure@unitymutual.co.uk
If you need financial advice
If you're unsure whether a product is right for you, it's worth speaking to an Independent Financial Advisor (IFA).
You can find a local advisor at unbiased.co.uk. Keep in mind that financial advice may come with a fee, so be sure to ask about costs before receiving advice.
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