Saving for your children with Shepherds Friendly

When you’ve got a child in your life that you care about, such as a son or daughter, or a grandchild, niece or nephew, it’s natural that you want to help them make the best possible start to adult life.

If you’re hoping to give them this head start with a cash lump sum, then choosing a tax-efficient child savings plan could be very important as there are a lot of benefits that you could take advantage of.

If you look at the table below, you’ll be able to compare our range of tax-efficient savings plans for children that can be opened by parents or extended family, to help you save for a child you love.

Here is a quick summary of our plans to help you make your mind up:

Junior ISA

Young Saver Plan

Junior Money Maker

Open from: £10 per month / £100 one-off £7.50 per month £100 per month
Maximum monthly contribution: £340 £100 £200
Maximum annual contribution: £4,128 £1,200 £2,400
Additional deposits allowed? Yes (up to annual allowance) No No
Annual Bonuses Yes Yes Yes
Maximum age: 16 16 11
Plan term: Until age 18 Age 18 or 10 years, whichever comes later Age 18 or 10 years, whichever comes later
Available to: Parent / guardian Anyone (parental consent required) Anyone (parental consent required)
Available to children with a CTF? No Yes Yes
Junior ISA

Junior ISA

Our Junior ISA is available to any child who lives in the UK and who does not already have a Child Trust Fund in their name. It’s a flexible and tax-efficient savings plan invested in our With-Profits Fund that aims to pay an annual bonus, the value of which will depend on the fund’s performance.

Young Saver Plan

Young Saver Plan

You can open our Young Saver Plan regardless of whether or not you’re the child’s parent or guardian, and it’s available to any child who lives in the UK and is aged under 16. A child can have a Young Saver Plan regardless of any other savings plans they might have, and we’ll aim to pay an annual bonus into the fund.

University Savings Plan

Junior Money Maker

Our Junior Money Maker lets you invest for your child over the long-term, and aims to add an annual bonus to the tax-efficient savings you’ve built up, although as with any investment this is not guaranteed.

However, at Shepherds Friendly we offer you and your child even more, with a range of benefits that set our Junior Money Maker apart from other children’s savings plans.

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All three of our children’s savings plans are invested in our With-Profits Fund, which is a medium to low-risk fund that invests primarily in stocks and shares with the aim of producing greater growth over the long-term than would be achievable in a cash-based account. Once we have paid a bonus into your child’s plan we will never take it away, and the value of the plan will not fluctuate daily in line with stock market performance. The bonus paid annually will reflect the performance of the fund over that period.

However, like any investment there are risks involved. If you surrender the plan early, or in the event that you transfer your child’s Junior ISA to another provider, then it is possible that we may make a deduction to the value of the plan and your child could get back less than you have paid in. Because of this your capital is at risk. We also may not pay a bonus in years where the returns on the fund have been particularly low.

Why choose us for children’s savings?

As well as having a range of plans to suit the needs of parents and other family members, we can offer you so much more when you open a children’s savings plan with us.

We’re a mutual so we are owned and run by our members. When you take out a children’s savings plan with us you will become a member of our society and in doing so will have a voice on how the society is run, including getting to vote on key issues within the company.

There are lots of other benefits to choosing a mutual society to help you make the most of your child savings plans too, including the fact that we don’t have any shareholders to pay dividends to, so you could get to keep more of our profits.