13 September 2021

  • News

Spotlight on...saving and investing for children

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 £150,000, there is something for everyone!

Please read the product information and Key Information Document before you 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 £9,000 in the 2021/22 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 2021/22 interim bonus rate before charges of 1.5% is 3.75% 

The JISA value could be reduced if withdrawn during adverse market conditions, but money invested for five years or longer is guaranteed.

Tax treatment depends on individual circumstances and may be subject to change in the future.

Bonuses are not guaranteed to be paid and depend on the performance of the Society’s with-profits fund.

Children's 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)

If you surrender the plan before maturity (which is the term you select when first starting the plan), you may get back less than you have paid in.

Tax treatment depends on individual circumstances and may be subject to change in the future.

Children's 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 – £150,000
  • Money is invested in our balanced with-profits fund
  • Open-ended term, but is designed to be for at least five years

If you surrender in the first five years a surrender penalty will apply, meaning you might get back less than you invested.

Tax treatment depends on individual circumstances and may be subject to change in the future.

Children's 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)

If you surrender the plan before maturity (which is the term you select when first starting the plan), you may get back less than you have paid in.

Tax treatment depends on individual circumstances and may be subject to change in the future.

Bonuses are not guaranteed to be paid and depend on the performance of the Society’s with-profits fund.

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 team on 01226 741 000* Mon-Fri 9am–5pm or use the online chat service on our website.

*Calls may be monitored and recorded for your protection.

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. 

By Dawn Gregory

@sheffieldmutual

Chief Commercial Officer

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