Young Saver Plan

If you are a parent, grandparent, family member or friend you can open a tax efficient savings plan for a child you love, from just £7.50 a month

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Overview

Fund performance

Why us?

Save tax efficiently for a child you love and care for.

Our Young Saver Plan makes saving for the future of a child you love simple, with one investment fund which is managed by our fund manager. This means you don’t have to make complicated investment decisions. The money invested on behalf of the child is done so in a sensible and responsible manner, with the aim of steady investment growth via annual bonuses.

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Where do we invest?

The fund that we invest in is known as our With-Profits fund, but within this there are a variety of commodities.

UK and overseas company shares


Investing in company shares helps us to aim for higher growth, but also carries an increased risk factor.

Property


Property, considered a safer investment than shares, carries less of a risk but also offers good growth potential.

Government and company bonds


Bonds carry far less risk than property or shares, but don’t offer the same potential for growth either.

Deposits


Deposits are cash savings that carry the lowest risk level, but also offer the lowest potential growth.

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In normal market conditions, it's likely that the majority of your money would be invested within shares and property, as these have the means to provide your investment with the most growth. However, the fund is actively managed meaning that our fund manager may move your money into safer commodities when market or external factors threaten investment conditions.


How has our Young Saver Plan performed?

Below you can see the previous performance of our Young Saver Plan over the last five years.

ISA Bonus Graph

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This chart shows bonuses paid to our Young Saver Plan members, and is the actual return received. Please remember that past performance is not a guide to how the Young Saver Plan could perform in the future, and although we can never take bonuses away once they have been paid, we may not pay one in years when performance is particularly poor.


What's the risk?

All investments carry a level of risk. We consider our Young Saver Plan carries an investment risk rating of low to medium.

ISA Risk
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The reason that we have a risk rating at the lower end of the scale is that we apply a process known as smoothing to the child’s investment. In doing this we hold onto some of the profit in strong investment conditions, so that when conditions are not as favourable we can still aim to pay a bonus into the child’s plan. This also means that the child’s money is protected from short-term stock market volatility, which could reduce the value of their fund. You should remember though that your capital is at risk.


How does the sickness benefit work?

We offer a sickness benefit after the child has been off school for 4 weeks of continuous sickness, once the plan has been in force for 6 months.

The maximum weekly sickness benefit is £400 and the minimum weekly benefit is £30. Your weekly benefit is limited to four times your monthly payment into the plan. For example, if you pay £50 per month into the Young Saver Plan, your maximum weekly benefit is £200.

Please note: Children under five years of age are not eligible for sickness cover.


Bonuses explained

Where possible, we'll add bonuses to the Young Saver Plan that will help to boost your savings, and will be worked out as a percentage of the value of your entire fund. There are two types of applicable bonus.

Annual Bonus

We aim to pay this bonus once a year, for the duration of your investment. The level of bonus can go up and down each year, and there is no guarantee we'll pay one.


Final Bonus

This bonus may be paid once the plan term comes to an end to ensure you receive your fair share of the investment fund. Again, the final bonus is subject to investment conditions and we may not pay one.



Free shopping voucher when you take out a plan

Love 2 Shop Love 2 Shop

Apply for a Young Saver Plan and we’ll send you a Love2Shop voucher code
worth up to £30£35 when you’ve made your first payment.

Apply for a Young Saver Plan and we’ll send you a Love2Shop voucher code
worth up to £30 that can be spent at various online retailers.

Click here for terms and conditions.

Need more information?

You can use the tabs at the top of this page to find out more about the plan. We also have a handy infographic that helps to explain more.

If you still have questions about the plan then we’ve put together a useful list of FAQ’s.

Otherwise, please feel free to get in touch with our Customer Service team who will be happy to answer any questions you have or to run through the application with you.

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0800 526 249



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You can call us any time between 8am - 5pm Monday to Thursday or 8am - 4pm Friday.

Ready to get started?

Before you start your application, please make sure that you have read and understand the following documents:

When you’re happy with your understanding of how the plan works, then you can get started with your application.

Start here

Important things to consider

  • How the investment performs may vary during the term of the plan. Because of this the child could receive a higher or lower sum than you expect at the end of the plan and may not get back as much as you have paid in.
  • The amount of bonus paid each year is related to the total amount of sickness benefit paid out, and the investment performance of Shepherds Friendly’s funds. Therefore the bonus will fluctuate over the term of the plan.
  • If money is taken out of the plan at age 11 the child is unlikely to get back as much as we originally told you they would because of this early withdrawal.
  • If the plan is stopped and money is taken out at any time before the end of the plan you may have to pay to do so. This cost could be more or less than the examples in this leaflet.
  • Past performance cannot be taken as a guarantee of future returns. Inflation may affect the value of your investment in the future.
  • Bonus rates vary from year to year depending on the performance of our investments and in some years we may not pay out any at all.
  • HM Revenue and Customs may change the tax status in the future.
  • If our investment returns have been low we may use a Market Value Reduction to make sure the child does not leave the fund with more than their fair share of its assets. This is to protect plan holders who still have money in the fund.

When you take out an investment product with us your capital is at risk and you may get back less than you have put in. All references to taxation are to UK taxation and are based on Shepherds Friendly Society's understanding of current legislation and H M Revenue and Customs practice which may change in the future. Investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract. Please ensure that you read the full terms and conditions of this plan which are available from your financial adviser or by contacting us directly.

No advice has been given by Shepherds Friendly, and if you are in any doubt as to whether a savings plan is suited to your needs, then you should contact a financial adviser. There may be a charge for financial advice, and the cost should be confirmed to you before any advice is given.