Everyone takes a different approach to preparing for the future. Some are happy to take a wait-and see stance, others carefully pinch every penny, but most fall somewhere in between. With the cost of raising a child increasing at what seems an ever spiraling rate, it makes more sense than ever for parents to save as early and as much as possible to give their children a head start in life. However, when it comes to planning for the future of their children, to the majority of parents saving can be a daunting prospect; there are many options and considerations to be made, and often it is tough to choose what they would consider to be the right option.
Shepherds Friendly, a mutual society whose origins date back to 1826, has been providing families a choice of tax-efficient child savings plans for many parents nationwide, such as the Junior ISA, the University Savings Plan and Young Saver Plan.
By opting for saving plans with Shepherds Friendly parents gain access to variety of benefits on the product of their choice such as tax efficient savings, sickness benefits, manageable monthly investments and dedicated customer service. Also, because Shepherds Friendly is a mutual organisation, parents can save with confidence knowing that our primary duty is to their members, not to shareholders (of which there are none), and that our special tax status offers you distinct savings advantages.
Shepherds Friendly offer the following children saving products:
Shepherds Young Saver Plan
One of the few remaining plans of its kind in the UK the Young Saver Plan allows a parent or guardian of the child to save and receive will get a TAX-EXEMPT lump sum upon maturity, plus sickness benefits of up to £400 a week. Available to any child under the age of 16 years it can be proposed by any parent, guardian, relative or friend of the child.
Shepherds Junior ISA
The Junior ISA replaced the Child Trust Fund in November 2011, a simple tax free savings and investment account very similar to an adult ISA just a mini version of one, which allows parents, grandparents and family friends to invest in cash and stocks & shares but on behalf of their children. The Junior ISA is available to children under the age of 18 years but this must not have a Child Trust Fund or another Junior ISA. Only a parent or guardian may open a plan though friends and relatives can pay in should they wish.
University Savings Plan
The University Savings plan is a tax exempt form of saving to help towards the cost of a child’s University education that offers a tax free lump on majority. This is a regular savings plan with an added sickness benefit feature. To start a plan your child would need to be under the age of 11 years as the plan would need to run for at least ten years, and not exceed their 21st birthday.
For more information on saving for your children please get in touch with their partners Shepherds Mutual Solutions on 0800 526 249 and they will help you make the right decision for you.