Children's Saving Plans
Junior ISA – A child’s saving plan
Roy Castle Lung Cancer Foundation is delighted to offer supporters a Junior ISA through mutual, Shepherds Friendly Society.
Shepherds Friendly’s Junior ISA is a savings plan which allows parents to save a tax-free lump sum for their child, which they will receive when he or she turns 18. A Junior ISA could help towards saving goals parents have for their child, such as covering the costs of their university education or buying their first car.
Features of the plan include:
- Tax rules mean that the Junior ISA is tax-efficient, making it exempt from capital gains tax and income tax
- Flexible saving; you can choose monthly payments starting at £10 or save via one-off payments from as little as £100
- Invested in a variety of assets which means that it has more potential to grow than a cash Junior ISA, although this also means that the value can fall as well as rise.
- Receive annual bonuses into your child’s plan subject to fund performance
- Family and friends can add to the plan
When you take out the plan, you will receive a Love2Shop voucher worth up to £30. Shepherds Friendly will also make a £30 donation to Roy Castle Lung Cancer Foundation.
What is a Junior ISA?
A Junior ISA is a tax-efficient children's savings plan that allows parents to make contributions on a child's behalf, subject to an annual allowance. The aim of the plan is to provide a child with a tax-free lump sum when they turn 18.
In the 2017 to 2018 tax year, the savings limit for Junior ISAs is £4,128. Parents/guardians can open a Junior ISA and manage the account, but the money belongs to the child.*
Not the child’s parent? Set up a Young Saver Plan
If you’re a grandparent, aunt, uncle or extended family member, then you can’t open a Junior ISA, but Shepherds Friendly offers another option for saving. Their Young Saver Plan is available to extended family and even friends of the child, provided you get parental consent within the application. Like the Junior ISA, the plan offers tax-efficient saving and you can start saving from just £7.50 per month. Again, the money is invested with the aim of long-term growth, but this does mean that your capital is at risk, and you may get back less than you have paid in.
When you take out the plan, you will receive a Love2Shop voucher worth up to £30. Shepherds Friendly will also make a £40 donation to Roy Castle Lung Cancer Foundation.
Who is Shepherds Friendly?
Shepherds Friendly are experts in a range of financial products including children’s and adults savings, income protection and over 50s life insurance. Established on Christmas Day in 1826, the Society’s plans are designed to help you look after your family financially and plan for your own future.
Shepherds Friendly won the award for 'Best Small Insurer' at the Insurance Investment Exchange Awards 2017. Their values, principles and commitment to mutuality are the basis on which the whole company operates, and is believed to set them apart from some other modern financial institutions.
- All references to taxation are to UK taxation and are based on Shepherds Friendly Society's understanding of current legislation and H M Revenue and Customs practice which may change in the future.
- When you take out a Junior ISA with Shepherds Friendly, like any other investment product, your capital is at risk and you may get back less than you have put in.