Child Saver Plan
Our Child Saver Plan is designed for customers who wish to build up a lump sum for a child to have at maturity. You will agree to pay regular weekly premiums for the full term of the Plan, which will be a fixed period of at least 10 years. In return for paying your chosen premium over your selected term, the child as beneficiary will be allocated a Guaranteed Sum Assured. This is the minimum that we will pay out when your Child Saver Plan matures. There is the potential for us to add annual bonuses to the Plan and possibly a final bonus at the maturity date or when a life assurance claim is made. You must be able to pay a minimum of £5 per week (£3 if you are an existing member) and the maximum you can pay (including other qualifying insurance policies) is £69 per week. Investments will be in a range of assets and will operate on a With-Profits basis. There are no guarantees that annual or final bonuses will be made.
Tax treatment may be subject to change in the future.
Bonuses are not guaranteed.
Payouts could affect any means-tested benefits you may be entitled to receive.
Past performance is not an indication of future performance. Over time, inflation could reduce the purchasing power of the accumulated maturity value.
The child may get back less than you have invested when your plan matures.
If you surrender the Plan before its maturity date, the child may get back less than you paid in and if you surrender it during the first year, there is no surrender value.
Invest a minimum of £5 weekly (£3 if an existing member)
Tax efficient dependent on individual circumstances
Easy to apply on-line
A personalised service where you can always speak with a person
160 years of history
How much can I put into the Child Saver Plan?
You must pay a minimum premium of £5 per week or £3 per week if you are an existing member. The maximum total premium in this product and any other qualifying insurance policies is £69 per week. Payments can be deducted directly from your net pay if you work for a train operating company, or by Direct Debit if you prefer.
Where will my money be invested?
Your money will be invested in the Society’s With-Profits Fund which invests in a diversified range of asset classes, including government gilts, corporate bonds, UK and overseas equities, collective investment funds, cash deposits and property.
How are bonuses calculated and paid?
Each year our Management Committee may declare an annual bonus. This is calculated as a percentage of the Guaranteed Sum Assured and once added to your Plan cannot be removed providing premiums continue to be paid. There is also the potential for a final bonus to be added to your Plan once it matures or when a life assurance claim is paid. The final bonus is normally calculated as a percentage of the Guaranteed Sum Assured and annual bonuses already added.
Bonus rates are not guaranteed, can go up or down each year and could be zero.
How much will the child get back when the Plan matures?
The Child Saver Plan includes a Guaranteed Sum Assured which is payable either on maturity or in the event of death. This is the minimum we will pay out provided that all premiums are up to date at the time that the claim is made. We will add any annual bonuses and a final bonus to the Guaranteed Sum Assured if applicable.
Can I take withdrawals from my Plan?
You cannot make any withdrawals from your Plan, but you can surrender your Plan for a cash-in value. This would be paid to the child as beneficiary.
What happens if I surrender my Plan?
If you decide to stop paying into the Child Saver Plan, the Society may pay the child as beneficiary a surrender value, based on a percentage of premiums paid. This could be less than you have paid in. If you surrender your Plan in the first year, there is no surrender value
Need more information?
If you still have questions about the Child Saver Plan, 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.
Telephone: 0800 328 9140
Email: [email protected]
You can call us any time between 9am–5pm Monday to Thursday or 9am–3.30pm on a Friday.
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