Child Savings Plans: everything you need to know

by motherandbaby |
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Have you thought about your child’s future once they leave home? With the current cost of university, house prices outpacing inflation and the sharp increase in average rent prices, the best way to prepare for your child’s future is to start planning now.

When you consider the rising costs associated with your child growing up, there’s no doubt it makes sense to consider saving to give them a head start with their future.

Save as little as £10 per month

Mother and Baby has partnered with Shepherds Friendly to bring you a range of tax efficient savings plans for children that can be opened by parents or extended family from as little as £10 per month, to help you save for a child you love. As a ‘thank you’, once you have opened a plan online with Shepherds Friendly you will be entitled to a Love2Shop voucher code of up to £30! This code can be used online at a wide variety of retailers including Amazon, Marks & Spencer, Debenhams, John Lewis, iTunes, Topshop and more.

Why should I save for my child?

Child savings plans can help foster long-term, healthy saving habits in children. As children begin to understand that money is being saved regularly for them, it is hoped that they will become more curious and willing to learn about the benefits of saving money themselves. Alternatively, sometimes parents save for their children as a surprise for their 18th birthday.

Children’s savings plans are a great way to ensure your child’s money stays untouched until their 18th birthday, or even longer with some plans, and to ensure that they are the only ones who receive the money at the end of the plan.

Also, it’s so easy to start saving with a Shepherds Friendly children’s savings plan. All you have to do is:

  • Choose a savings plan that suits you and your needs

  • Open it online

  • Save monthly, annually or when it suits you

  • Shepherds Friendly will aim to pay a  bonus each year, the value of which will be based on the performance of the fund the child’s money is invested in

  • When the plan ends, your child will receive a tax-free lump sum

What Shepherds Friendly can offer

Shepherds Friendly can offer a choice of savings products for your children, including:

All of their children’s savings plans are tax efficient. Tax efficient savings plans are free from both income and capital gains tax, which means even more of the money you save for your child remains in the savings plan. They are a long-term investment, which means there is a bigger potential for investment growth.

Why Shepherds Friendly?

Shepherds Friendly takes pride in their rich heritage, mutual status and commitment to putting their members at the heart of everything they do.

They are a mutual organisation, meaning they don’t have any shareholders and instead their members, or their customers, own the business. Any profit they make is reinvested back into the society, to help them to add bonuses to their members’ savings plans and to maintain the high quality of services and products that they offer.

As they are run by their members, for their members, you may find that they provide competitive annual bonuses on their savings plans, and mutual societies also tend to report a higher level of customer satisfaction than other banking organisations.

Click here to find out more [and apply online]{href='' }

Mother & Baby is a trading style of Bauer Consumer Media Ltd. Bauer Consumer Media Ltd is an Introducer Appointed Representative of The Shepherds Friendly Society Limited.

Shepherds Friendly is a trading name of The Shepherds Friendly Society Limited which is an incorporated Friendly Society under the 1992 Friendly Societies Act No. 240F. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

All references to taxation are to UK taxation and are based on Shepherds Friendly Society's understanding of current legislation and H M Revenue and Customs practice which may change in the future. For our With Profits plans investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract.

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