Jargon Buster
Or to put it simply ... some of the terms explained in plain English:
Child Tax Exempt Savings Plan
A tax-efficient savings plan only available through a Friendly Society. It provides a tax-exempt cash sum for your child at the end of a chosen term - from 10 to 25 years.
Direct Debits
The easy, efficient way to make regular monthly payments into the Child Tax Exempt Savings Plan. Payments are transferred direct from your Bank or Building Society account.
Premiums
The amount you pay into the plan each month.
With Profits Fund
A fund that invests in a balanced mix of investments such as property and stock market investments. In good years, we may hold back some of the return and use it to top up bonuses in years when the fund performs less well. This is called "smoothing".
Annual bonuses may be declared annually and possibly a final bonus may be added at the end of the plan. Bonuses are not guaranteed and will depend on the future performance of the With Profits Fund and how we decide to distribute any profit.
Tax Exempt Cash Payment
Your child's cash payment is free of Income Tax and Capital Gains Tax at the end of the term. Please remember tax benefits may vary as a result of statutory change and their value will depend on individual circumstances.
