Product Performance
How will the Child Tax Exempt Savings Plan grow?
The Child Tax Exempt Savings Plan does not pay interest on the
amount you have paid in. Instead, the Order Insurance With Profits
Fund aims to provide your child or grandchild's plan with the
potential for growth, by way of bonuses.
What are bonuses?
Your monthly contributions are invested in our Order Insurance
With Profits Fund along with the other Order Insurance Fund
policyholders (excluding those with ethical investments). Dependent
on the performance of this fund, Foresters Friendly aim to add
annual bonuses to increase the value of the guaranteed maturity amount of the child's
plan.
When the time comes and the Child Tax Exempt Savings Plan
matures, we also aim to add a final bonus to the value of the plan.
This is done to ensure that the plan's payout reflects your fair
share of the With Profits Fund.
The addition of any bonuses is not guaranteed, however once a
bonus has been added to the Child Tax Exempt Savings Plan it cannot
be taken away and will become part of the guaranteed value.
How do bonuses work?
We aim to pay bonuses in two ways:
1. Annually:
- On the guaranteed
maturity amount of the plan
The guaranteed maturity amount is
the total amount you will pay into the plan when it reaches
maturity and is the minimum amount the child will receive when the
plan reaches maturity. This is subject to you maintaining all your
monthly contributions into the plan for the full term.
For example if you are saving £25
for 10 years, the guaranteed maturity amount for your child or
grandchild's plan is £3,000. So each year, if a bonus is
declared it will be calculated on the total £3,000 instead of your
total contributions for that year (£300).
- On any previous
bonuses declared on the plan
After the plan has been in place for
a year, in addition to any annual bonus you receive on the plan's
guaranteed maturity amount, an additional bonus may be paid on any
previous bonuses that have been declared.
For example, if the child's plan has
had a total of £70 in bonuses declared previously, this amount may
receive a bonus too which all adds to the total value of the
plan.
Once annual bonuses have been added
to the child's plan, they cannot be taken away provided that you
maintain your monthly contributions.
2. Final bonus on maturity of the
plan:
When the Child Tax Exempt Savings Plan matures, we also aim to
add a final bonus to the total value of your child's plan.
Past performance
The following annual bonus rates have been declared for the
Child Tax Exempt Savings Plan:
| Year |
Annual Bonus
Rates |
| 2012 |
0.25% of the guaranteed maturity
amount and 0.75% of previous bonuses |
| 2011 |
0.25% of the guaranteed maturity
amount and 0.75% of previous bonuses |
| 2010 |
0.25% of the guaranteed maturity
amount and 0.75% of previous bonuses |
| 2009 |
0.5% of the guaranteed maturity
amount and 1.00% of previous bonuses |
| 2008 |
1% of the guaranteed maturity amount
and 2.25% of previous bonuses |
| 2007 |
2% of the guaranteed maturity amount
and 3.50% of previous bonuses |
| 2006 |
2% of the guaranteed maturity amount
and 3.50% of previous bonuses |
| 2005 |
2% of the guaranteed maturity amount
and 3.50% of previous bonuses |
| 2004 |
1.75% of the guaranteed maturity
amount and 3.25% of previous bonuses |
The addition of any bonuses is not guaranteed.
We may vary the design of a product to best meet the needs of
our policyholders which may affect the timing and size of future
bonuses. Therefore the above table is provided for
information purposes only and should not be considered an
indication of likely future performance.
Risk category
The Child Tax Exempt Savings Plan is classified as a 'Low
Risk'. This is suitable for low risk investors, which can be
classified as follows:
- You are willing to take a minimal amount of risk only.
- You do not want to lose any of your capital.
- You understand and accept that inflation could erode the value
of your money over time.
- You understand that Foresters Friendly Society regard a 'Low
Risk' product to be one where the level of the guarantee within the
product will ensure that you will receive at least the amount you
have saved in the plan. This is subject to all contributions
being paid over the term.
For more details about the Child Tax Exempt Savings Plan, please
read the Child
Tax Exempt Savings Plan Key Features Document.
Child Tax Exempt Savings Plan
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