Why Save With A Friendly Society?

When it comes to saving for your future, there are many routes you can take. From banks, building societies and investing, each route can provide you with different benefits for your savings needs. 

However, there is another option that can help you save and protect your money at the same time: friendly societies. 

Friendly societies offer a unique approach to your savings goals. Unlike traditional savings routes, friendly societies are specifically designed to benefit members by providing distinctive savings products, personal service, and long-term support throughout. 

At Sheffield Mutual, we are committed to helping you find the simplest ways to benefit from saving. Throughout this guide, we will explore exactly what friendly societies are, how they are designed to help, and the key advantages of choosing a society plan so that you can make the most of your money. 

What Is A Friendly Society?

A friendly society is a dedicated organisation (like us!) that supports its members through savings, investments and protection. Unlike a typical bank route, which operates primarily to generate profits for shareholders, friendly societies are created to be owned by their members. 

A mutual structure allows members to seek more personal and community-focused approaches to saving their money by providing trust, stability, and long-term financial support. 

What Are The Benefits Of Saving With A Friendly Society? 

There are many benefits to saving with a friendly society, including: 

1. Access to exclusive tax-exempt savings plans:

One of the main benefits of friendly societies is the ability to access products which are not available through banks and other financial institutions. By opting for a Tax Exempt Savings Plan, you can save tax-free in addition to your ISA allowance to provide extra opportunities to build your money. 

Terms can be chosen between 10 and 25 years, with the added flexibility to save monthly or annually. Savers can build their pots from as little as £5 a month, up to £25 a month, or from £50 to £270 per year, allowing for an additional tax-efficient way to save if you have already used part or all of your ISA allowance.

Many savers choose to save this way to supplement their existing savings strategies and ensure that their money is working as efficiently as possible. 

1. Encouragement of long-term saving habits:

Friendly society payments are specifically designed to encourage regular saving habits over the medium or long term. With the ability to save from as little as £5 a month and terms of 10 to 25 years, they are incredibly accessible to a wide range of people and budgets. 

By saving in this way, you can work towards major financial goals such as saving for retirement, building a house deposit, funding educational costs or creating a fund for your children or grandchildren. 

Saving small amounts of money each month/year can help encourage positive saving habits that can have a major impact on your future. 

1. Member-owned approaches:

Unlike a standard financial institution route, friendly societies work on a personal basis. For example, this ensures that the focus is solely on delivering valuable support to members rather than maximising profits. By doing so, members can be assured that they are gaining a straightforward approach, with clear communication and customer-focused service. 

This can be a game-changer for savers who prefer a more personal approach with their financial provider, as it allows them to have full focus and support. 

1. Suitability for both adults and children: 

With friendly societies, there is no limit. We ensure we are flexible, regardless of the policyholder's age, so that parents, grandparents, and even children can save towards a supportive future. 

With Tax Exempt Savings Plans, you can be assured that saving for major milestones such as educational costs, or simply ensuring financial stability for your future, is possible.

1. Affordable plans: 

While most savings plans may seem as though they require large monthly contributions, with Sheffield Mutual, you can contribute as little as £5 a month to make it easier to start your savings, regardless of your income level. 

With such a low barrier, it could mean that even the smallest regular savings can add up to something financially meaningful over time. 

1. Focusing on long-term goals:

If you are keen to plan for your financial future, a friendly society could be the one for you. Whether you are planning for your future retirement, supporting your children, or simply improving your financial situation, long-term savings plans can help to encourage a more disciplined lifestyle. 

By committing even a small amount to savings each month, you can maintain a regular contribution towards your future and find it much easier to stay focused on your long-term goals by avoiding the temptation to dip into your savings for short-term needs. 

Are Friendly Societies Right For Me? 

Whilst a friendly society may not be the right fit for everyone, it offers many advantages compared to other financial services. 

If you are looking for medium-to long-term savings, want to avoid the temptation to access your savings, and want a member-focused experience for your financial support, a friendly society could be for you. 

Furthermore, other reasons as to why a friendly society may be the right option for your financial needs are:

• Tax-efficient saving
• Saving options for all ages
• Affordable contributions
• Potential bonus rates

Choosing where, when, and how much to save for your future can be difficult, especially when there is no one-size-fits-all solution. With a friendly society, you can steadily build your finances with confidence. 

Member-owned approaches allow us to ensure that our service is focused specifically on you. No matter your long-term financial goals, we will ensure that you have hands-on support for every step of the journey. Whether you are saving for your children’s future, your retirement, or simply looking to find ways to make your money work harder, Sheffield Mutual is here for you. 

Explore your tax exempt savings options today, or contact us to find out more, and take your first step towards simple savings. 

Tax treatment depends on individual circumstances and may be subject to change in the future. The Tax Exempt Savings Plan is designed to be held for the full term selected; surrendering early may mean you get less back than you have paid in. 

This article provides generic information and the writer's opinions and should not be relied upon for investment decisions. Sheffield Mutual has provided no advice. If you doubt whether a savings or investment plan suits you, consider contacting a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk or www.vouchedfor.co.uk. Advisers may charge for providing such advice and should confirm any costs beforehand.