Your children’s future and how to save for it
Putting money aside for your loved ones is something many of us will consider at some point in our lives. We want to be able to support those closest to us in a time of uncertainty or need. There are many ways one can do this in today’s world, whether it be through insurance or savings and we can have that peace of mind that there is something put away for a rainy day.
For parents, children are often the main priority and putting money aside for a child can be a wonderful gift for their future. Not only can the concept of saving be a very essential lesson to your children, they can also start their adult life with some savings in hand.
When investing for children, if considering a stock market type investment, it can be a good idea to go for something that provides a mix of different companies and sectors. However parents can look beyond products aimed specifically at children because an investment can be held on behalf of a child.
Although they say the best things in life are free, parents know all too well how much having children can cost! Expenses such as pocket money, school trips and birthday presents are just a start as there are longer term costs such as a first car, university fees or an even greater occasion, like a wedding, that should be factored in. All of these can seem quite intimidating and therefore it could be comforting to have a plan of action in place for the future.
Our Tax-Exempt Savings Plan
Our new Tax-Exempt Savings Plan (TESP) is a simple product that lets you put a little away every month over the long term. You can save for yourself or for children or grandchildren, the proceeds can be used to pay towards a range of things – from holidays and university fees or maybe just something for one of life’s rainy days. It’s a great way to build up savings steadily over time. You can choose the length of your policy and at the end of your chosen term you get a tax-free lump sum to spend on whatever you want.
TESPs are exclusively available from friendly societies and anyone over 16 can buy one. Our premiums are fixed at £25 per month and you can choose to save for between 10 and 25 years.
When the policy pays out at maturity it is free from income tax and capital gains tax. Your money is invested in our with-profits fund in a mix of company shares, property, cash and fixed interest gilts and bonds. This spread of assets represents greater potential for growth than a deposit account offered by banks or building societies in return for a risk to your capital. At the end of your chosen term, the policy pays you a lump sum of money called the guaranteed maturity benefit, plus any bonuses which are based on the performance of our with-profits fund.
If this type of savings plan appeals to you, visit our website to apply, receive further information and to download our Tax-Exempt Savings Plan pack. You can also give our friendly team a call on 0333 014 6244.