Focus on… Saving and Investing for Children

Posted on June 16, 2017

Children's saving plans

Children's saving plans

Have you started to make provisions for your children’s / grandchildren’s future?

Sheffield Mutual offers a range of products for children, whether you want to invest a lump sum from just £100, a regular monthly premium from just £5 per month or a lump sum investment of up to £50,000, there is something for everyone!

Children’s savings plans at a glance:-

(Please read the full product Key Features information before proceeding to apply)

Investment Junior ISA

The simple way to give your child a solid financial start in life, with tax-free* returns.

  • Available to all children under 18 who do not have a Child Trust Fund (CTF)
  • OR, if your child holds a CTF or Junior ISA elsewhere, it can be transferred to us
  • Save from as little as £10 per month / £100 single premium up to £4,128 in the 2017/18 tax year
  • Policy must be opened by the child’s parent or guardian
  • Top-ups can be made by anyone at any time
  • Potential of tax-free* investment growth through bonuses
  • The 2017/18 Interim Bonus rate before charges of 1.5% is 4.5% (bonuses are not guaranteed)
  • The JISA value could be reduced if withdrawn during adverse market conditions, but money invested for 5 years or longer is guaranteed
  • Tax Exempt Savings Plan

The Tax Exempt Savings Plan could be the perfect way to save for your children’s university fees or build up a house deposit.

  • Only available from friendly societies and in addition to your ISA/JISA allowance
  • Save from £5 to £25 per month or between £50 and £270 per annum tax-free*
  • Decide how long to save for, between 10 and 25 years
  • Receive a guaranteed tax-free* final amount on maturity plus possible bonuses
  • Available to adults and children from birth (parents and grandparents can run the plan)
  • Please be aware that a surrender penalty will apply if cashed in before maturity

Investment Bond

Grow a child’s nest egg with this medium to long-term lump sum investment, which has a guaranteed minimum return of at least 103% of your original investment after five years, plus possible bonuses depending on the performance of the with-profits fund.

  • Invest a lump sum between £1,000 – £50,000
  • Money is invested in our balanced with-profits fund
  • Open-ended term, but is designed to be for at least five years
  • A surrender penalty will apply if cashed in within the first five years
  • Subject to the guaranteed return after 5 years, the policy could be reduced if withdrawn during adverse investment conditions.

Regular Savings Plan

The Regular Savings Plan could be the perfect way to save for children, with the potential to earn a better return than a cash savings account in the longer term.

  • Consider for regular savings over and above the tax-exempt savings plan allowance
  • Save from £5 per month or £50 per annum
  • Choose how long you want to save for between 10 & 25 years
  • Receive a guaranteed final amount on maturity plus possible bonuses
  • Final return should be free from further tax for basic rate tax payers*
  • Available to adults and children from birth (parents and grandparents can run the plan)
  • Please be aware that a surrender penalty will apply if cashed in before maturity

There are so many different options available for children’s savings nowadays, it can be difficult to decide which one is best. To help you, Sheffield Mutual has created a “Product Selector Tool”, it’s really quick and easy to use but if you’d prefer a quick informal chat call our trained staff on 01226 741000* Mon-Fri 9am–5pm or use the online chat service on our website.

*Calls may be monitored and recorded for your protection.

Saving and investing for children

Saving and investing for children

This blog provides generic information and opinions of the writer and should not be relied upon for making investment decisions. No advice has been provided by Sheffield Mutual. If you are in any doubt as to whether a savings or investment plan is suitable for you, you should consider contacting a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk or www.vouchedfor.co.uk. Advisers may charge for providing such advice and should confirm any costs beforehand. *Any reference to taxation is based on the writer’s understanding of current tax legislation and practice, which could change in the future.

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