Children's Savings Plan
Children's Savings Plan
Why start a Red Rose Childrens Savings Plan?
There are many things going on in the life of a young adult
- Further education
- The first car
- Getting on the property ladder
- Perhaps marriage
- Pursuing a hobby
- Seeing the world
For less than the cost of two weeks daily newspaper you can make these things possible for your child.
Why Plan for My Child's Future?
We all want the best possible future for our children and grandchildren. With a little sensible financial planning now, you can help them achieve their hopes, dreams and goals with the Red Rose Childrens Savings Plan
How much can I save?
Any UK resident can start a Children's Savings Plan with Red Rose from as little
as £5 a month and choose how many years to save for - the minimum savings period is 10 years.
There is no limit to the amount you can save.
Indeed you will not pay tax on the first £25 per month that you put away
The sooner you start investing for their future, the longer their savings will have to grow,
resulting in a larger accumulated lump sum.
Is my Red Rose Childrens Saving Plan taxed?
The Red Rose Childrens Savings Plan allows parents, grandparents or guardians to take advantage of our valuable position as a Friendly Society to save regularily towards a tax-free lump sum. The first £25 per month you save for each child is completely free of tax meaning that your child's savings should grow at a better rate than if tax were being paid. What's more, at the end of the plan the lump sum your child receives is totally tax-free.*
You can have this tax free allowance even if you have an ISA. If you don't use it you simply lose it.
How much will my child get?
This depends on how much you save each month, how long you save for and
the amount of money we add to the lump sum over the period.
This example gives an indication of how much a child could have received
For each £5 monthly premium (minimum premium £5 per month ) you will be guaranteed the sum assured shown.
| Age at entry (Next Birthday) | Term | Age at Maturity | ||
|---|---|---|---|---|
| 18 | 21 | |||
| 1 year | 17yr term | £803 | £971 | 20yr term |
| 2 years | 16yr term | £751 | £913 | 19yr term |
| 3 years | 15yr term | £700 | £857 | 18yr term |
| 4 years | 14 yr term | £650 | £803 | 17yr term |
| 5 years | 13yr term | £602 | £751 | 16yr term |
| 6 years | 12yr term | £554 | £700 | 15yr term |
| 7 years | 11yrs term | £508 | £650 | 14yr term |
| 8 years | 10yr term | £462 | £602 | 13yr term |
| 9 years | £ | £554 | 12yr term | |
| 10 years | £ | £508 | 11yr term | |
| 11 years | £ | £462 | 10yr term | |
Policies are for a minimum term of 10 years.
Higher benefits can be obtained by the payment of proportionally higher premiums, with the sum assured being rounded up to the nearest £1.
Please remember past performance is not an indication of future performance.
Future performance and bonus levels are dependent on profits not yet earned
Results in the example were in line with periods of higher interest and bonuses and may not be repeated in future.
It is never too late to start saving, but you can open a Red Rose
Children's Savings Plan at any time up to age 16.
How does it grow?
Red Rose Children's Savings Plan gives security to your child's savings whilst letting them grow steadily. We will normally add a annual bonus payment to your child's savings each year that cannot be taken away unless the plan is cashed-in early or you stop making payments.
