Child Tax-Exempt Savings

Our Child Tax-Exempt Savings Plan is open to all UK residents aged between 0 to 15 years old.

If you are not the child’s parent or guardian, we’ll ask you to confirm that they agree to you setting up the plan. We will then send the plan documents to them so you will need to provide their details as part of the application process.

If the person paying into the plan isn’t the parent or guardian, they’ll receive a copy of the Direct Debit agreement to show they are paying the contributions. They’ll also have the right to cancel the children’s savings plan in the first 30 days.

Have a child over 15 and interested in saving for their future? Take a look at our Adult Tax Exempt Savings plan.

Under current legislation each person (including children) can save up to a maximum of £25 a month or £270 a year in a Friendly Society tax free regular savings plan.

Each year we’ll send you a statement which shows your payments made and any bonuses which have been added from the With-Profits fund performance. In the weeks leading up to the end of your plan, we’ll send you an update on how much we expect it to be worth when it ends.

If you wish to find out the value of your policy, please contact our Customer Service Team on 0333 014 6244.

No, we’re afraid not. Child Tax-Exempt Savings Plans are a fixed savings plan, so withdrawals are not possible until the plan ends (matures).

The child cannot cash in this plan until they reach at least the age of 16. The parent or guardian can apply for the surrender or cashing in of the plan at any time until the child reaches 16. The amount to be paid out will be done so in the child’s name at all times, as the plan is for their benefit.

If the plan is cashed in before its end (maturity) date, your child may get back less then you have paid in. Please refer to your policy and key features document for further information.

We take deductions from the policy at 30% of your first year’s payments and 6% of payments in the following years. These deductions are for the cost of setting up and administering your plan. They will be reflected in the amount you get back when the plan reaches maturity, you cash it in early, or it’s closed because payments have stopped.

Even though these deductions are in place, you are guaranteed to get back more than you have paid in as long as you make all the payments due during the plan’s chosen length.

For further information on our charges please refer to our Key facts document.

If you pass away, whilst you are paying for the plan, someone else may continue to pay the payments so the plan can continue to its maturity date. If there is no one to continue paying into the plan, the plan can either be cashed-in or stopped.

If the child passes away during the term of the plan, we will refund all payments made into the child’s Tax Exempt Savings Plan up to the date of death to the child’s estate.

Please note inheritance tax may be payable, depending on the size of the child’s estate.

Our With-Profits fund invests in a mix of assets including property, equities, cash and UK government bonds. It aims to provide steady growth over the medium to long term by investing in a broad range of assets.

Any profits generated by the fund are used to add an annual bonus to your plan and possibly a final bonus when the plan reaches the end of its term. The addition of bonuses is not guaranteed.

If you would like to learn more about our with-profits fund, please visit the With-Profits Fund section of our Existing Members page. There you will find the relevant documents to help you understand what the fund is and how it works.