Child Trust Fund Top Ups

A little boost

For your little
(or not so little) ones

Sometimes you might find yourselves with a little extra money that you want to add to your child’s Child Trust Fund. There are a number of easy ways to top up their plan.  What better way to make a difference to their tomorrow, today.

Pay in up to

£4,368

Top up from

£5

per month

Friends and
family can

top-up

too

Potential

bonuses

to grow their savings

If your child or grandchild has a Child Trust Fund with us, then you can top it up at any time. £20 here, £50 there. It’s the perfect place for that Christmas and Birthday money to potentially work harder for them.

A little thank you for a big decision

There’s more good news. Top up your Child Trust Fund with £500 or more and we’ll send you a free Junior Forrie Bear once the payment has been received.

Terms & conditions apply

Why top up their child trust fund?

You can pay in £4,368 in the 2019/2020 tax year.

Your money is invested in our top performing With Profits fund and has the potential to grow thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Make top ups from as little as £5 a month, or one off payments from £50.

Friends and family can top up too. It could be the perfect place for Birthday and Christmas money!

Sarah, Reading

“Thanks to the generosity of Foresters Friendly Society, I received an Educational Award grant, which allowed me to purchase literature for my course, together with assisting with my accommodation costs whilst at University. The grant has provided a financial benefit towards my continued ambition of becoming a primary school teacher.”

Read More

Common questions

Can I still open a Foresters Friendly Society Child Trust Fund?

Child Trust Funds are no longer available to open and were replaced by the Junior ISA. But on the plus side, we do offer other saving plans which can be used to save for your child’s future. They’re our Junior ISA and our Child Tax Exempt Savings Plan. It’s still possible to transfer an existing Child Trust Fund or Junior ISA into a Foresters Friendly Society Junior ISA, simply download a Transfer Form and submit your application by post. We will manage the transfer on your behalf.

Can I transfer an existing Child Trust Fund or Junior ISA to Foresters Friendly?

We no longer accept transfers into our Child Trust Fund. However, we provide a Junior ISA so it is possible to transfer an existing Child Trust Fund or Junior ISA into a Foresters Friendly Society Junior ISA, simply download a Transfer Form and submit your application by post. We will manage the transfer on your behalf.

What alternative saving plans to the Child Trust Fund do you have?

We provide a stocks and shares Junior ISA. This is pretty similar to a Child Trust Fund and you can pay in £4,368 over the 2019/2020 tax year. Then there’s the Child Tax Exempt Savings Plan, only available through Friendly Societies. This is a tax efficient savings plan that allows you to pay regular premiums of £25 a month into the plan for a fixed term. This means that you decide when you want the plan to mature for your child or grandchild (after the child’s 16th birthday and subject to a minimum term of 10 years).

Is there a limit on the amount of top ups I can make?

Yes. The maximum you can top up for the 2019/2020 tax year is £4,368.

If you want to pay in more than £4,368 per year, our Child Tax Exempt Savings Plan can be taken out as well as a Child Trust Fund to further maximise the child’s savings.

Can my child access the money in their Child Trust Fund before they reach 18?

No. The Child Trust Fund is designed to offer a financial head start when the child becomes an adult by providing a cash payment when they turn 18 years old. Only in exceptional circumstances can they get their hands on the money. There are further details within the plan conditions which you will have received when you opened the Child Trust Fund.  If you have misplaced these, please call us on 0800 988 2418 and we will answer any questions you may have.

Can I have access to the money?

No, the only person who can access the money in the Child Trust Fund is your child. And even then it’s locked away until they’re 18.

Do I have control over the money?

You control the Child Trust Fund until your child reaches 16. From 16 onwards, your child can control the Child Trust Fund if they wish to.

Where is the money invested?

The money you pay into the Child Trust Fund is invested in Foresters Friendly Society’s top performing with profits Order Insurance Fund, with the Ethical Child Trust Fund only being invested in the ethical section of our fund. We never forget it’s your child’s money, so we take extra good care of it. The money is spread across a number of different types of assets that may include property, UK government bonds, equities and cash. If the return from any one particular asset type is poor, the investment may be protected from the full impact of this fall as other assets may perform better.

What interest does the plan pay?

The Child Trust Fund does not pay interest. Instead, by investing the money you pay into the plan into our with profits Order Insurance Fund we provide the potential for growth by way of bonuses. The better the fund does, the higher the bonuses your child could potentially receive. Any profits generated by our fund are used to add an annual bonus and possibly a final bonus when the plan reaches the end of its term.

We have paid annual bonuses on our Child Trust Fund for the past 11 years.

  • In 2018 the annual bonus rate was 2%

The annual bonus is applied to the amount you have invested in your child’s Child Trust Fund to date plus any previous bonuses that have been added.

The addition of any bonus 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).

Added value for your child – Foresters Extras

With a Child Trust Fund your child is part of the Foresters Friendly Family, and can enjoy some wonderful, unique benefits including discretionary grants to help with the cost of higher education and to support life’s ups or downs.

Find out more

Three ways to top up your child trust fund

1

Online

Make a one-off, secure, payment from your debit card. Top up online now.

2

By phone

Call us on 0800 988 2418 and we can take a payment from your debit card over the phone.

3

By post

Download the Child Trust Fund Top Up Form and either complete the Direct Debit instruction, or attach a cheque for the lump sum contribution amount, then send it back to us and we will do the rest for you.

 

TOP UP ONLINE TODAY

Ready to get started?

TOP UP ONLINE TODAY

call 0800 988 2418

OR Download a top up form

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418

Child Tax Exempt Savings Plan

A helping hand

For your children

It’s hard to imagine our children being fully grown adults. When the little ones become big ones. It seems like such a long way away, doesn’t it? But it’ll be here before we know it. Our Child Tax Exempt Savings Plan is a great way for you to give them some financial support for the adult years ahead.

A

tax-free

sum for your
child

Potential

bonuses

to grow their savings

Pay in

£25

a month

Save from

10 to 25

years

This affordable plan offers a guaranteed tax-free cash sum when they need help the most. Imagine helping them buy their first car, paying towards university fees, or even helping with a deposit on a property. What a wonderful feeling to play such an important part in their lives.

A little thank you for a big decision

There’s some more good news. Take out a Child Tax Exempt Savings plan online and we’ll send you a £30 M&S Gift Card. This will be after three monthly contributions have been received.

Terms & conditions apply

Why choose the Child Tax Exempt Savings Plan?

Affordable saving for your child’s future at just £25 a month.

Available for children aged 0 to 15. But don’t worry if you have a child over 16. We offer an adult Tax Exempt Savings Plan as well.

Can be held alongside a Junior ISA or Child Trust Fund.

The money you save is invested in our top performing With Profits fund and has the potential to grow thanks to the addition of annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Choose how long you want to save for from 10 to 25 years. You can even select the exact day – we find birthdays are very popular! Your child must be at least 16 years old to receive the cash sum.

As a Foresters member your child or grandchild has access to Foresters Extras which includes discretionary grants to help cover the cost of things like higher education and healthcare costs.

Laura about her daughter Ruby

“I chose the Foresters Friendly Society Child Tax Exempt Savings Plan for my daughter, Ruby, because it’s an affordable amount to save for her each month with excellent member benefits in addition to the policy. Ruby has been a policyholder for 7 years now and I took the Child Tax Exempt Savings Plan out on her behalf shortly after joining the Foresters Member Services department. I love the fact that I was able to choose how long I wanted to save for. I’ve chosen her 21st birthday as the date she will receive the cash from the policy, so that I am able to give her a special gift on this special day. I think the most attractive member benefit for us in the future will be the educational award, which could help her when she goes in to further education.”

Read more

A real-life example

A £25 per month Child Tax Exempt Savings Plan which commenced in November 2008 with a 10 year term provided a payout of £3,438.78 at maturity. This is an average annual return of 2.7% and a total return of 14.6%, after charges.

Past performance should not be seen as a reliable indicator of future results and the addition of annual and final bonuses is not guaranteed.

  • Following a re-price, all TESPs taken out from 1st January 2018 will have a guarantee of 91% of contributions. This change to the guaranteed amount does not impact future investment performance of your child’s plan, but does mean the amount your child receives at the end of the plan could be lower than the contributions made.
  • The final bonus rate is based on the year that the policy commenced and can change at any time.
  • The above graph is provided for information purposes. The potential for future bonuses depends on the performance of the Order Insurance Fund and how we distribute any profit.

Ready to start saving for your child’s future? Apply today!

Added value for your child – Foresters Extras

Taking out a Child Tax Exempt Savings Plan means your child is part of the Foresters Friendly Family, and can enjoy some wonderful, unique benefits including discretionary grants to help with the cost of higher education and to support life’s ups or downs.

Find out more

Common questions

Who can open a Child Tax Exempt Savings Plan?

Anyone can open a Child Tax Exempt Savings Plan. If you are not the child’s parent or guardian, we’ll ask you to confirm that they agree to you setting up the plan. We will then send the plan documents to them so you will need to provide their details as part of the application process.

If the person paying into the plan isn’t the parent or guardian, they’ll receive a copy of the Direct Debit agreement to show they are paying the contributions. They’ll also receive the right to cancel pack in the first 30 days.

Can I open more than one Child Tax Exempt Savings Plan for my child?

In a word, no. You see, under current legislation each person (including children) can save up to a maximum of £25 a month in a Friendly Society tax free regular savings plan. And because monthly contributions for this plan are fixed at £25, you can’t hold more than one plan.

However, any contributions above these limits can be invested in our other savings plans.

What is the guarantee?

Good question. As long as you keep paying in the monthly contributions for the full term, your child is guaranteed a minimum cash lump sum at the end of the term of 91% of the contributions paid.

And, whilst not guaranteed, there’s the potential for bonuses to increase the amount your child receives. Once added to their plan, a bonus cannot be taken away and will become part of the guaranteed value, subject to all monthly contributions being paid. That’s not a bad start to adulthood!

As further protection for you, we’re covered by the Financial Services Compensation Scheme. This means that in the unlikely event that we could not honour the guarantee (i.e. if we were declared insolvent), you may be entitled to make a claim on the Scheme.

Are there any charges?

As with any investment, there are costs in running the fund. These include the costs of buying and selling assets. We deduct charges upfront before we declare bonuses. So there are no additional charges for you to pay. For more information about charges, see the Child Tax Exempt Savings Plan Key Information Document and Important Information.

Where is the money invested?

All the money you pay into the Child Tax Exempt Savings Plan is invested in Foresters Friendly Society’s top performing with profits Order Insurance Fund. To keep the risk down, we spread all the money paid into our fund across a number of different types of assets. These may include stocks & shares, property, government bonds and cash. If the return from any one particular asset type is poor, the fund may be protected from the full impact of this fall as other assets may perform better.

Please see the Principles and Practices of Financial Management (PPFM) for the latest information on our investment strategy.

What interest does the plan pay?

The Child Tax Exempt Savings Plan doesn’t pay interest. Instead, by investing the money you pay into the plan into our with profits Order Insurance Fund we provide the potential for growth by way of bonuses. The better the fund does, the higher the bonuses you could potentially receive. Any profits generated by our fund are used to add an annual bonus to your child’s guaranteed sum and possibly a final bonus when the plan reaches the end of its term.

Since 2010 the following annual bonus rates have been declared for the Child Tax Exempt Savings Plan:

  • 0.25% of the guaranteed maturity amount and 0.75% of previous bonuses

The guaranteed maturity amount is 91% of the total amount you will pay into the plan when it reaches maturity and is the guaranteed minimum amount you will receive. This is subject to you paying all your monthly contributions into the plan for its full term.

For example if you are saving £25 for 18 years, the guaranteed maturity amount for your plan is £4,914. So each year, if a bonus is declared it will be calculated on the total £4,914 instead of your total contributions for that year (£300).

Additionally, if your plan has had a total of £70 in bonuses declared previously, for example, this amount may receive a bonus too which all adds to the total value of the plan.

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.

Can withdrawals be made from the plan?

No, we’re afraid not. Child Tax Exempt Savings Plans like this one are a fixed term regular saving plan so withdrawals are not possible until the plan matures. It’s all about playing the long game.

What happens if I stop paying?

We’d urge you to keep up payments. But if you have to stop during the first year, the plan will lapse with no value and we’re afraid we won’t be able to refund your money. After the first year, if the plan is cashed in or you stop making payments, the child may get back less than you have paid in. Any payouts made due to the surrender or cashing in of this plan will be paid to the child, as this plan is for their benefit.

What happens if either myself, or the child, passes away during the plan’s term?

If the child passes away, a refund of contributions paid to date will be payable to their estate.

If you pass away while paying contributions on behalf of a child, someone else may continue to pay the contributions so the plan can continue to its maturity date. If there is no one to continue paying into the plan, the guaranteed maturity amount will be reduced and will remain invested until the maturity date when the plan’s value will be paid to the child. During this time, the plan will continue to benefit from any annual bonuses which will be paid on the reduced guaranteed maturity amount.

What happens when my child’s plan reaches maturity?

We’ll send the child a maturity information pack a little while before the plan is due to mature. This will advise how much the cash lump sum payment will be, and will detail the information we’ll require so we can transfer the money to them. If the maturity date is set for the child’s 16th birthday, the maturity information pack will be sent to the parent/guardian.

When the plan matures all of the money saved and all bonuses will be paid directly to your child. So that we can do this, your child will need a bank account set up in their name.

I’m not sure if the Child Tax Exempt Savings Plan is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser. Of course, you may have to pay for this advice.

Ready to get started? APPLY ONLINE OR Request a pack

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418

An ISA for

The next generation

For any parent, knowing your child has a secure future is absolutely priceless. Our Junior ISA (JISA) can help to put some solid building blocks in place so that your little ones can grow and flourish. When they turn 18 they will have a savings pot they can put towards the next step in their life.

Simple

child savings

plan

Save up to

£4,368

Open from just

£10

Potential growth
thanks to

bonuses

We all dream about giving our children the best start in life – and that includes financially. It’s a great feeling knowing that they have savings growing as they do. Our Junior ISA gives you the chance to invest simply in their future. The plan must be opened by the child’s parent or guardian, but anyone can set up the Direct Debit or add lumps sums. Children aged 16 and 17 can open a JISA themselves.

A little thank you for a big decision

There’s more good news. Take out a Junior ISA online, or submit a transfer request to open a new Junior ISA by post, with a lump sum investment of at least £4,000 and we’ll send you an £50 M&S Gift Card once your money has remained invested for 3 months.

Terms & conditions apply

Why choose the Junior ISA?

It is a simple and affordable way to build up a savings pot for your child for when they reach 18.

Available for children aged 0 – 18. Children aged 16 and 17 can open a JISA themselves.

You can save up to £4,368 this tax year by saving regularly from £10 per month, investing a lump sum of £500 and making top ups of at least £50.

Once opened friends and family can pay in too.

Your money is invested in our top performing With Profits fund and has the potential to grow thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)

Access to Foresters Extras – membership benefits – including discretionary grants to help you to cover the cost of things like higher education and healthcare costs.

Lara, Nottingham

“I applied for the Educational Award as my father had done 25 years ago. The grant has helped support my A-Level studies by enabling me to buy text books and stationery.

Thanks to the continued support of Foresters Friendly Society, I’m confident that I will be able to achieve the grades I need to achieve my goal of going to university.”

Read More

Common questions

Who can open a Junior ISA (JISA)?

A Junior ISA must be opened by the child’s parent, guardian or person with parental responsibility, but anyone can set up a Direct Debit or add lumps sums.

The parent or guardian will manage the account until the child is 16, when they’ll take control of it, but you, or other family and friends, can continue to contribute. The child will be able to access the money paid into the Junior ISA and any annual bonuses that have been added once they are 18. No one else can access the savings.

Children aged 16 and 17 can open a JISA themselves.

How many Junior ISAs can I open?

Your child can have a Junior Cash ISA, a Junior Stocks and Shares ISA or both. If they hold both, the combined total which can be saved this year must still be within the annual Junior ISA allowance.

Unlike Adult ISAs where it’s possible to have multiple ISA accounts from different tax years, your child can only hold one cash Junior ISA and one stocks and shares Junior ISA. So if your child already has a stocks and shares Junior ISA with £5,000 saved into it and you want to open a Foresters stocks and shares Junior ISA, you will need to transfer the £5,000 into our Junior ISA.

Our Junior ISA is categorised as a Stocks and Shares JISA and transfers from other Junior ISAs will be managed on your behalf, making the process as easy as possible for you. All you need to do is complete a simple form.

Can a Junior ISA be held alongside a Child Trust Fund (CTF)?

If the child already has a Child Trust Fund (CTF), they can’t hold both products, but the CTF can be transferred into the Junior ISA, as can another Junior ISA held with another provider. To transfer a CTF or Junior ISA into our Junior ISA, simply download a Transfer Form and submit your application by post.

Are there any charges?

There is an Annual Management Charge which is initially set at 1.9% of the value of your Junior ISA. We deduct charges upfront before we declare bonuses. This means there are no additional charges for you to pay. This charge could change, but we promise it will never exceed 3% of the value of your Junior ISA in any one year. The charges are designed to cover our costs for administering the JISA on your behalf. For more information about charges, please take a few minutes to read the relevant Junior ISA Key Information Document (lump sum investment or monthly contribution) and Important Information.

Where is my money invested?

Your money is invested in our top performing with profits Order Insurance Fund with the aim of providing investment growth. Dependent on the performance of our fund, we aim to add annual bonuses and a final bonus to your child’s Junior ISA which will increase their plan’s value. The addition of bonuses is not guaranteed.

We never forget it’s your child’s money, so we take extra good care of it. Within our fund, your money is spread across a number of different types of investments to help minimise risk and increase the potential returns. This way your money benefits from exposure to a range of asset classes which may include equities (company shares), fixed interest bonds (government and company), property and cash.

What interest does the Junior ISA plan pay?

The Foresters Stocks & Shares Junior ISA doesn’t pay interest. Instead, by investing the money you pay into the plan into our Order Insurance with profits Fund we provide the potential for growth through bonuses. What growth your child’s Junior ISA receives will depend on the performance of our fund.

The following annual bonus rates have been declared for the Junior ISA:

YearAnnual Bonus Rate
20181.75%

The annual bonus rate is applied to the amounts you have invested, less the amounts you have withdrawn, and any annual bonuses that have been previously added.

The addition of any bonus is not guaranteed and your child may not get back the full amount originally invested, dependent on the investment conditions at withdrawal.

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.

Can withdrawals be made from a JISA?

No – no one can access the funds legally before the child turns 18. In other words, the plan is locked.

What happens to the Junior ISA when the child turns 18?

Once your child turns 18 they’ll be able to access their Junior ISA. Their lump sum will either continue to be invested as an adult ISA, or the money can be used to further their plans. It could help them with university fees, saving towards a deposit on a house, or even buy their first car.

What happens if the person paying contributions passes away before the child reaches 18?

Anyone can pay into the Junior ISA so, in this case, another person can carry on with the payments.

What if I change my mind?

After your application is accepted you will receive a statutory notice of your right to cancel. You will then have 30 days from the commencement date of the Junior ISA, or the date the notice is received, whichever is later, in which to change your mind. Something often referred to as a cooling-off period.

For more information please see the Important Information document.

I’m not sure if a Junior ISA is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser.

Added value for your child – Foresters Extras

Taking out a Junior ISA means your child is part of the Foresters Friendly family, and can enjoy some wonderful, unique benefits including discretionary grants to help with higher education costs when the time comes and to support life’s ups and downs.

Find out more

Three ways to top up an existing Junior ISA

1

Online

Make a one-off, secure, payment from your debit card. Top up online now.

2

By phone

Call us on 0800 988 2418 and we can take a payment from your debit card over the phone.

3

By post

Download the Junior ISA Top Up Form and either complete the Direct Debit instruction or attach a cheque for the lump sum contribution amount, then send it back to us and we will do the rest for you.

 

TOP UP ONLINE TODAY

Ready to get started? APPLY ONLINE OR Request a PACK

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418