Children's Regular Savings Plan

Absolutely, choose a term between 10 and 25 years and watch your savings grow.

Yes, anyone can hold one of these plans, please see Regular Savings Plan.

We invest in a range of different assets with the aim of providing a higher return in the medium to long-term than is achievable with a bank or building society account. Sheffield Mutual's with-profits fund is managed to provide a low to medium risk investment, appealing to anyone with a more cautious approach to investment. Our investments include property, shares of UK companies, government gilts, corporate bonds, commercial mortgages and cash.

The proportion held in each of these will vary depending on market conditions. You'll be pleased to know that we seek to adopt an ethical approach to investing and it is our policy not to invest knowingly or directly in industries relating to armaments, tobacco, gambling or pornography.

Instead of interest, we pay bonuses on all of our with-profits products.

We invest our funds as described above and receive a return on those investments, which can vary from year to year. In March/April we review the returns achieved during the previous calendar year and then declare a bonus rate for each product type. The rate varies depending upon overall investment returns and is not therefore guaranteed to be paid at the same rate, or at all, in future years. However, once bonuses have been added they will not be taken away, providing the policy runs to maturity, or if the policyholder dies before the end of the term.

We also try to ‘smooth’ returns over the life of the policy by retaining some of the investment return in good years to maintain bonus rates in less positive years. However, to ensure the child receives their fair share of returns on the policy over its lifetime, an additional final bonus may be paid on maturity. Payment of this type of bonus depends entirely on investment performance and the rate at which annual bonuses have been added. It is not guaranteed and, if paid, the rate may vary from year to year.

The money you save is invested in a fund on which the Society pays tax and tax at the basic rate may be treated as paid on any taxable gain, which means there is likely to be no further tax to pay unless the child is a higher rate tax payer on maturity or surrender. However, a gain on which tax is treated as paid may have an effect on the child's tax liability if you qualify for age-related allowances or reliefs, or you are receiving tax credits.

In the event of death of the policyholder (child) before the end of the term, the Society will refund all premiums paid plus interest up to the date of death. Interest is calculated using the Bank of England base rate(s) that have applied during the term of the policy + 1%, though this could be changed in the future by the Society. Notice of any change will be given. If the person proposing the plan were to die, someone else could take over the payments, if there is nobody suitable, the plan could be closed and the payment would be made to the child.

No, this plan does not include any life cover. For more information on our life insurance products, please visit the life insurance section on the website.

Our team would be more than happy to provide you with factual information about our products and services, so you can make your own decision about how to proceed. However, we are unable to give any financial advice or recommendations on the suitability of our products. If you are unsure, you should seek advice from a qualified financial adviser, which may incur a fee.

To comply with regulations, the Society will require a copy of the child's birth certificate, passport or a child benefit letter. This must be independently certified if saving more than £50 per month (£600 per annum). We will also require confirmation of your identification and address. We’ll aim to do this using an electronic verification system, but reserve the right to ask for appropriate documentation from you, if this is not possible.