What is a Young Saver Plan?
The Young Saver Plan is a tax efficient savings plan designed for children, that offers simple and flexible saving options. It differs from a Junior ISA as you can open a Young Saver Plan for any child in your life, such as your grandchildren, nieces or nephews. It’s not only parents that want to help towards the future of a child they care about, and that’s why the Young Saver Plan is offered to other family members too. If you’re not the child’s parent or guardian all that is asked is that you seek permission from them before applying for the plan.
A little something for you
As a ‘thank you’, once you have opened a Young Saver Plan online with Shepherds Friendly you will be entitled to a Love2Shop voucher code of up to £30! This code can be used online at a wide variety of retailers including Amazon, Marks & Spencer, Debenhams, John Lewis, iTunes, Topshop and more. Click here to find out more and apply online.
Why should I choose a Young Saver Plan?
As well as being a flexible, simple plan to help save for a child in your life, the Young Saver Plan also has many more great benefits. These include:
- With a Young Saver Plan, you can save from as little as £7.50 a month to as much as £100, and there will not be a penny of tax to pay on the final lump sum payout on maturity in 10 years or at age 18.
- The Plan also offers sickness benefits for extra peace of mind. If the child is ill and the parent or guardian has to take time off to care for them, they can claim up to £400 a week from the child's 5th birthday
- The flexible plan allows you to increase or reduce your premiums at any time to suit you
- While the Plan is designed to run for at least 10 years, parents or guardians can withdraw up to 25% of the value of the fund when the child reaches the age of 11. We all know how expensive starting secondary school can be, and you can use the money to help pay for uniforms, stationary, transport or anything else to help your child.
- If you’ve used your child’s annual tax efficient allowance in their Child Trust Fund or Junior ISA, you can still open and save into the Young Saver Plan to further maximise their tax-efficient savings.
Simple, straightforward investing
Unlike many other investment accounts you may come across, you don’t need to make any decisions about which funds or investments to choose with the Young Saver Plan. Instead Shepherds Friendly invests on your behalf in their With-Profits Fund, and returns on the plan will depend on the performance of the fund throughout the investment period.
What does tax efficient mean?
Tax efficient savings plans are free of both income and capital gains tax, which means even more money for the child you’re saving for at the end of the plan. They are a long-term investment, which means there is a bigger potential for investment growth through the payment of annual bonuses.
As Shepherds Friendly is a mutual organisation, you can save with confidence knowing that they work for their members and don’t have any shareholders to appease. Their special tax status that is only available to friendly societies offers you distinct savings advantages too. The Young Saver Plan offers an ideal means of saving for your loved one's future, with the additional advantage of sickness benefits too.
Click here to find out more about other children’s savings products available from Shepherds Friendly
Mother & Baby is a trading style of Bauer Consumer Media Ltd. Bauer Consumer Media Ltd is an Introducer Appointed Representative of The Shepherds Friendly Society Limited.
Shepherds Friendly is a trading name of The Shepherds Friendly Society Limited which is an incorporated Friendly Society under the 1992 Friendly Societies Act No. 240F. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
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. For our With Profits plans investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract.