CHILDREN's SAVER PLAN
The Plan offers you a chance to build up a valuable lump sum with no additional tax liability for your children in an affordable way. The plan is flexible so you can decide if you would like the savings to mature after 10 years, or when your children reach either 16, 18, 21 or 25 years of age.
The Children's Saver Plan gives you the opportunity to benefit from savings with no additional tax liability — perhaps for your child's further education, their first car, their wedding, or just the comfort of knowing that there is a guaranteed nest egg for them at the end of the savings term.
Deducted from payroll
Always speak to the same person
Simple to join online now
No additional tax liability savings
150 year history
Example of performance for sample policies maturing after 1 June 2021 for a £5 weekly premium based on entry at birth:
10 year policy taken out in 2011
with maturity payout of £2,788
Past performance is not an indicator of future returns.
How does it work?
It’s simple...To join the Children’s Saver Plan you need to commit to save for a minimum of 10 years. We can deduct your savings contribution directly from your pay, and the more your child will receive when the savings plan matures.
Each Child will be allocated a Guaranteed Sum Assured. This is the minimum amount your Child will get back when the savings plan matures, or earlier in the event of death.
Why is it tax-free?
Because it has a special tax status for Friendly Societies.
Tax-exempt policies from Railway Enginemen’s Assurance Society enjoy a special tax status afforded to members of Friendly Societies under current Government legislation. So, if you save no more than £5 per week, for a minimum of 10 years, the Society is not liable to suffer tax on the capital gain or investment income arising from the Children’s Saver Plan, with the exception of tax deducted from dividends on equities.
What happens to the profits?
We share them out... Each year, every Children’s Saver Plan policyholder will receive a share in the profits of the Society. A Reversionary Bonus may be added to the Guaranteed Sum Assured – once added this bonus can’t be taken away.
Will I need life cover for the policy?
It’s included... The Children’s Saver Plan Policy includes built in life cover with the policy. In the event that the Child dies during the agreed savings term, the Guaranteed Sum Assured or the value of the policy, whichever is the greater amount, will become payable to the child’s estate.
Need more information?
If you still have questions about the plan then we’ve put together a useful list of FAQs.
Otherwise, please feel free to get in touch with our Customer Service team who will be happy to answer any questions you have or to run through the application with you.
You can call us any time between 9am to 5pm Monday to Thursday or 9am to 4pm on a Friday.