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Childrens Savings Plan
Children's Savings Plan
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Children's Savings Plan

We all want the best possible future for our children and grandchildren. As they reach adulthood there are often many uses for a lump sum – further education; the first car; a gap year to see the world or marriage for example. 

Our Children’s Savings Plan is designed to help you build up a lump sum over the long term by saving a small, affordable amount on a regular basis for a fixed term of 10 years or more. It can be started from birth up until the child is 10 years old and they must be aged 16 or over at the end of the Plan. 


Main Product Features

  • Tax free

    The return at maturity (or on death during the term) is free of any personal taxation and the first £25 per month is invested in our tax exempt fund, meaning the return will be higher than if tax was being paid within the fund

  • With-profits Fund

    The investment is in our with-profits fund. This is a mixture of equities, gilts, corporate bonds, property and cash. It is important to remember that as a ‘mutual’ we have no shareholders. This means that ALL of our profits belong to our members

  • Bonuses

    As a member of the Society the child shares in the annual profits – a bonus is normally added each year which once added, cannot be taken away unless the Plan is cashed in before maturity. Depending on the investment performance a final, or ‘terminal’ bonus may also be paid at the end of the Plan to ensure all members receive their ‘fair share’ of profits made over the term of the Plan

  • Life cover included

    In the unfortunate event of the death of the life assured during the term the guaranteed sum assured AND all bonuses already added to the Plan will be paid out and a terminal bonus may also be paid

Things to consider

You will find more information about the Children’s Savings Plan in the key features document and below are some important points that we want you to be aware of:

  • This is a long term investment of 10 years or more. Although you can cash in the Plan before maturity if you need to, you could get back less than you have paid in
  • The value of the Plan will depend upon investment performance
  • Inflation will have an effect on the future purchasing power of your investment
  • HMRC could change the tax status of these types of policy in the future
Children's Savings Plan
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Product Comparison Table

Product
Children's Savings Plan

Child Trust Fund

Junior ISA
Min prem £5 £10 £50 initial
then £10pm
Max Prem £25
(a taxable version is available if a higher premium is required)
£4,128
for the 2017/18 tax year
£4,128
for 2017/18 tax year
Min age at outset Birth Born between 1 Sept 2002 and 2 Jan 2011 Born before Sept 2002 and still <18  or after 3 Jan 2011
Max age at outset 11 See above Born before Sept 2002 and still <18  or after 3 Jan 2011
Min term (years) 10
(must be 16 or older when proceeds taken)
None
but should be considered a medium to long term plan (5 years or more)
None
but should be considered a medium to long term plan (5 years or more)
Max term (years) 30 To age 18 To age 18
when proceeds can be taken, or it becomes an 'adult' ISA
Fixed term Yes No
but see above
No
but see above
Flexible contributions No Yes
can add lump sums, amend or stop regular payments and start again later
Yes
can add lump sums, amend or stop regular payments and start again later
Life cover Sum assured plus all bonuses added to date of death 101% of the CTF value at date of death 101% of the ISA value at date of death
Transferable No Yes
can be transferred from or to another provider
Yes
can be transferred from or to another provider