Tesco Savings Plan

Helping you save for the future

What’s it all about? You have received a copy of this booklet because Tesco has given you the option to join the Tesco Savings Plan – where you can choose from a range of competitively priced savings and investment products from Friends Life. You can invest in any combination of the following: Cash ISA Stocks & Shares ISA Investment Account The Stocks and Shares ISA and the Investment Account are long-term investments, but the values are not guaranteed and can go up and down depending on investment performance. You could get back less than you’ve paid in. The Tesco Savings Plan uses Friends Life’s My Money savings platform to provide a range of externally managed funds for you to invest in. It has been designed to help you to manage your finances and get a clearer picture of your savings through a website:

www.friendslifemymoney.co.uk This booklet can help you decide which savings product to choose, if you decide to join the Tesco Savings Plan. You should also read the Key features document and Terms and conditions for each product, the Fees and charges brochure for the Stocks & Shares ISA and the Investment Account and the Investment brochure. These can be found by visiting www.friendslife.co.uk/mymoney/ tescosavingsplan If you have any queries about why you have been offered this option you can contact Tesco on 02920 523555.

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What do you have to do? The Tesco Savings Plan has been developed to provide you with a range of competitively priced savings and investment products in which to save your pension salary supplement.

You need to: 1 Choose the products to join You can choose from: a Cash ISA a Stocks & Shares ISA or an Investment Account (if you have used up your ISA allowance).

2 Choose which funds you want to invest in These are set out in the Investment brochure which is available by visiting www.friendslife.co.uk/mymoney/tescosavingsplan

3 Once you have joined you are able to manage your account online which lets you: View your correspondence and documents

Switch funds and redirect future payments

View your payments and transactions

You’re in control View and update your personal contact details

Your financial information is private to you and you have access to it wherever and whenever you choose. You can also continue using My Money if you leave Tesco.

See a forecast of what your savings could be worth in the future

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Your options The chart opposite explains some of the differences between Cash ISAs, Stocks & Shares ISAs and the Investment Account so you can start to see which products might suit your needs.

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Typically used for

Where can money be invested?

Cash ISA

Stocks & Shares ISA

Investment Account

Tax free way of saving for the short or long‑term

Tax efficient way of saving in funds, shares and other investments for the medium to long‑term (5 years+)

Additional saving opportunity for the medium to long-term (5 years+) – perhaps where the ISA allowance has already been used

Cash only

Funds which in turn can invest in shares, property, fixed interest and money markets and directly in shares and other investments

Funds which in turn can invest in shares, property, fixed interest and money markets and directly in shares and other investments

Can money be withdrawn without notice? Is there a limit to how much I can invest?

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Tax free interest and/or investment income?

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Free of Capital Gains Tax? 1 The ISA allowance for the tax year 2016/17 is £15,240 and can be paid into a Cash ISA, Stocks & Shares ISA or Innovative Finance ISA in any combination. We do not offer Innovative Finance ISAs, further details of this should be sought from a provider of the product or a financial adviser. 2 No tax is payable on income or capital gains made by the investments. You can make withdrawals without notice but there are no tax benefits available. There could be Capital Gains Tax (CGT) to pay at some time in the future depending on your personal circumstances. Any CGT payable will relate to the tax year in which the gain is made and will be handled in your self‑assessment tax return for that year. 3 From 6 April 2016 HMRC introduced a Dividend Allowance. Any dividends you receive on your Investment Account will be subject to this allowance. For more information on how this works please visit: https://www.gov.uk/government/publications/dividend-allowance-factsheet/ dividend-allowance-factsheet

Notes Tax rules may change. The value of any tax benefits depends on the financial circumstances of the investor.



For further information please see the Key features documents and the Fees and charges brochure.

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Your saving and investment choices ISAs

Cash ISA

Making tax efficient savings

This is a tax free savings account that helps you save for your short to long term needs and lets you:

ISAs (Individual Savings Accounts) are designed to encourage more people to save for themselves and can be used to save cash or to invest in funds and other investments. Because ISAs are tax efficient, your savings have the potential to grow faster, which makes ISAs a popular way to save. They offer tax advantages so maximum limits are applied on the amount you are able to invest annually but you are able to access your savings as and when you need to. However there could be charges on withdrawals.

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Conveniently make payments directly from your salary and/or personal Direct Debit. Transfer in other Cash ISAs and Stocks & Shares ISAs so you can see all your savings in one place, without it affecting your annual ISA allowance. You should check with your current provider to see if they make a charge for transferring. Benefit from competitive variable rates of interest. Keep all the interest you earn in your account because any interest you earn is tax free.

Stocks & Shares ISA

The Investment Account lets you:

This is a tax efficient savings account that lets you save for your medium-term and long-term goals and lets you:

Invest in a selection of funds that have reduced charges available exclusively to Tesco employees

Invest in a selection of funds that have reduced charges available exclusively to Tesco employees

Conveniently make payments directly from your salary and/or personal Direct Debit.

Conveniently make payments directly from your salary and/or personal Direct Debit.

Easily view and change investments online and access your money if you need to

Easily view and change investments online and access your money if you need to

Complete your self-assessment tax return more easily – on any sale transactions you will be issued with a consolidated tax voucher

Transfer in other ISAs so you can see all your savings in one place without it affecting your annual ISA allowance. Please note that if you transfer a Cash ISA to a Stocks & Shares ISA your savings will no longer be held in cash. Their value could now go up and down and you could get less back. You should make sure that you have sufficient funds remaining that are easily accessible before you transfer.

Investment Account This is an account that lets you invest in a wide range of investments. As there are no tax benefits there is no limit to the amount you can invest.

Transfer in other funds and investments so you can see all your savings in one place (you do not have to take your investments out of the market whilst your money is being transferred) – please see the Investment Account Transfer in section of the website for more information. Some investments can carry a higher risk than others and may be subject to sudden or large falls in value; you could get nothing back. You should check with your current provider to see whether you will incur any charges before transferring investments.

You may benefit by investing in an Investment Account if, for example, you have used up your ISA allowance or if you hold investments with other providers and wish to consolidate them.

Note You can find out more information about the funds available to you in the Investment brochure available by visiting www.friendslife.co.uk/mymoney/tescosavingsplan

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Joining and next steps Joining the Tesco Savings Plan through Friends Life’s My Money is easy.

Once you have logged on for the first time you will be able to: Make changes to your investment choices at no extra cost

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All the information you need to make your decision as well as an application form is available by visiting www.friendslife.co.uk/ mymoney/tescosavingsplan

Set up any extra payments you wish to make directly

If you choose to join the Tesco Savings Plan you will need to complete the online application form. A secure individual account will be set up which Tesco cannot look at and then you can go online and access your My Money account.

Review and track the performance of your funds

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Simply start using My Money.

Make the most of saving online with Tesco www.friendslifemymoney.co.uk

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Need some help? If you have any queries about joining My Money, contact Tesco on 02920 523555. This should be your first point of contact for details of how to join and to find out when you’ll be able to login. Alternatively, you can contact your dedicated Friends Life Customer Services team who can support you with factual information about all aspects of the products and the My Money service:

Call Friends Life 0345 600 6303

Email Friends Life

mymoney.questions@ friendslife.co.uk

Write to Friends Life

PO Box 2282, Salisbury SP2 2HY

Your My Money helpline is available Monday to Friday between 8.00am and 5.30pm.

Please note Friends Life may record calls to improve service. Calls may be charged and these charges may vary, please speak to your network provider.

Need financial advice? Although My Money can help you with your decisions, it cannot provide you with specific financial advice. If you are unsure which saving and investment options are right for you, please seek financial advice. If you don’t have a financial adviser you can find one at www.unbiased.co.uk. You may need to pay for this advice. 9

Notes

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Friends Life Investment Solutions Limited An incorporated company limited by shares and registered in England and Wales, number 6389025. Registered office: Pixham End, Dorking, Surrey RH4 1QA. Authorised and regulated by the Financial Conduct Authority. Telephone 0345 602 9189 – calls may be recorded. www.friendslife.com Friends Life is a registered trade mark of the Aviva group. My Money is a registered trade mark of the Aviva group.

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NGS300/F 10.16 (53398)