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

So how does it all work?

Click a title to read detailed information.

Making affordable payments

Saving for your baby, child or grandchild's future doesn't have to cost much. You can save £25 a month if you apply online or by post. You can choose to save from £15 a month, if you are an existing member and apply through our Member Services team.

Please don’t stop making contributions in the first year, as this means the plan will lapse with no value and we won’t be able to refund your money.

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.

Guaranteed cash sum

As long as monthly contributions are maintained for the plan’s full term, your child is guaranteed a minimum cash lump sum at the end of the term. And there’s the potential for bonuses to be added too.

Please remember that inflation will affect what your child can buy with the proceeds of the plan. 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 Financial Services Compensation Scheme.

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 Information Document and Important Information 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

These membership benefits aren't regulated by the Financial Conduct Authority or the Prudential Regulation Authority and are regularly reviewed by us to make sure our members get the best options.

Child Tax Exempt Savings Plan - Product Performance >>

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