So how does it all work?
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Making affordable payments
Saving for your baby, child or grandchild's future doesn't have to cost much. You can save from £15 to £25 a month if you apply online or £25 a month if you apply by post.
If the plan is cashed in prior to maturity or you stop paying contributions, then your child may get back less than you have paid in or nothing if this is in the first year.
Choose how long you want to save for
You can choose how long you want to save for - between 10 and 25 years. Your decision on how long determines when the plan will mature - this can be any time after the child's 16th birthday and after a minimum of 10 years.
You can even select the exact day your child or grandchild will receive their tax-free savings sum - we find birthdays are very popular!
Please be aware that the Child Tax Exempt Savings Plan is not suitable as a short-term savings plan and that only the child will have access to the savings in the plan.
What we mean by a guaranteed cash sum
The child will receive a guaranteed cash lump sum when the plan matures. The amount is guaranteed to be at least what you have paid in. You must maintain your monthly contributions for the full term for this guarantee to apply.
Tax free saving with Foresters Friendly Society
Only a Friendly Society can give you the additional tax advantages of a Tax Exempt Savings Plan.
Tax-free means free of tax in your child or grandchild's hands. The final payment the child receives will be free of Capital Gains Tax and Income Tax which means even more money for your child. Like NISAs the tax is automatically deducted from UK share dividends.
Please be aware that tax rules might change and depend on individual circumstances.
How could my child's tax free savings grow?
All the money paid into the Child Tax Exempt Savings Plan goes into our with profits Order Insurance Fund, which is invested across a balanced mix of assets - including property, UK government bonds, equities and cash - to help minimise over-exposure to risk.
We aim to use any profits generated to add an annual bonus to the guaranteed sum and possibly a final bonus to be paid at maturity. 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.
As with most investments, bonuses are not guaranteed so your child's savings may not receive an annual or final bonus. Bonuses will depend on the future performance of the with profits Order Insurance Fund and how we decide to distribute any profit.
Please refer to the Key Features document for further information on our Child Tax Exempt Savings Plan and How our with profits Order Insurance Fund works.
Other benefits of taking out a Child Tax Exempt Savings Plan
As a Foresters member, your child or grandchild will have access to Foresters Extras - a range of discretionary benefits we offer at no additional cost.
Once they have been a Foresters member for six months, they can take advantage of benefits such as:
- discretionary grants, including Educational Awards to assist with the costs of higher education or training
- GP Consultation Service
These membership benefits aren't regulated and are regularly reviewed by us to make sure our members get the best options.
Child Tax Exempt Savings Plan - Product Performance >>