Child Tax Exempt Savings - Important Information
At Foresters Friendly Society, we explain to you exactly WHAT a product is, precisely WHY the product may suit your requirements and in simple to understand language, HOW you can apply.
It is also important for you to be aware of the following factors:
- To ensure the tax-efficiency of the plan, you must continue your monthly contributions for your chosen term. If this isn't the case, any gains the plan makes may be subject to tax.
- If you stop paying contributions in the first year, the policy will lapse with no value and you will not be able to have your contributions refunded. If you cash in the policy during the early years, your child may receive less than you paid in.
- The Child Tax Exempt Savings Plan is not suitable as a short term investment. Only your child will have access to the value of the plan. A Bank or Building Society account allows ready access to funds whereas the Child Tax Exempt Savings Plan does not generally allow access to the funds until your child is 16.
- A Bank or Building Society account has greater certainty of growth than a Child Tax Exempt Savings Plan. The addition of bonuses is not guaranteed and so it is possible that the Child Tax Exempt Savings Plan might not receive any annual and/or final bonus from the With Profits Fund.
- Bonuses will depend on the future investment performance of the With Profits Fund, as well as any deductions and how Foresters Friendly Society decide to distribute any profits.
- Past performance is not a guide to future performance.
- You should bear in mind that inflation will reduce what the child can buy in the future with the fund.
- You should keep your policy documents in a safe place - they contain important information about the Child Tax Exempt Savings Plan. You will also receive an annual statement showing how the plan is performing.
- Legislation may change which may affect the tax status of the plan.
- Your circumstances may change forcing you to stop making contributions.
- Our deductions may be higher than expected.
- All money paid into the plan immediately becomes the child's and contributions should be seen as a gift to the child.
Please make sure that you read and keep a copy of the Child Tax Exempt Savings Plan Key Features document before you decide to invest.
