Child Tax Exempt Savings Plan

Start saving now to give your child or grandchild a guaranteed tax-free cash sum when they reach adulthood

Child Tax Exempt Savings Plan

Product Performance

How could 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 with profits Order Insurance 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 with profits Order Insurance 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 payout reflects your fair share of the Order Insurance 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 at 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 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 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 savings.

Past performance

The following annual bonus rates have been declared for the Child Tax Exempt Savings Plan:

Year Annual Bonus Rates
2016 0.25% of the guaranteed maturity amount and 0.75% of previous bonuses
2015 0.25% of the guaranteed maturity amount and 0.75% of previous bonuses
2014 0.25% of the guaranteed maturity amount and 0.75% of previous bonuses
2013 0.25% of the guaranteed maturity amount and 0.75% of previous bonuses
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. To find out more about the addition of bonuses and how we manage our fund please read our
 Principles and Practices of Financial Management (PPFM).

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, who 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 Key Features.


Child Tax Exempt Savings Plan - FAQs >>

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