For financial products with a friendlier face
If you want to help your child on in life, then our ‘Junior Saver’ could be ideal for you.
You can save up to £25 per month, or £270 per year for your child to build up a tax free lump sum for your child – and you can even link the plan so that it is paid out on their birthday. Your child could use the lump sum towards university, travelling, a deposit on a flat or their first car for example.
This plan is available to any child under 18, even those who already have a child trust fund or Junior ISA.
Our Junior Saver offers a guaranteed amount (called a sum assured) that will be paid out on the maturity date of the plan. This will always be at least what has been paid in providing that all premiums due have been paid and the plan is paid out on the contracted maturity date.
In addition to this, the plan could grow in value by the addition of annual bonuses. The level of bonuses is not guaranteed but once they have been added to the plan they cannot be taken away as long as the plan runs to maturity and all premiums have been paid.
Examples of sums assured:
£10 per month for 10 years = £1236 or for 18 years = £2641
£25 per month for 10 years = £3090 or for 18 years = £6603
Putting it another way, if you saved £10 per month (roughly the cost of a child cinema ticket plus refreshments) or £25 per month (the cost of a PS3 game) for 18 years you could provide your child, grandchild or godchild with a lump sum that could help them towards their first car, pay towards a gap-year adventure or use towards the rising costs of education. The cinema visits may have been forgotten and the PS3 technology may be outdated by then, but they will undoubtably appreciate the helping start in life that a lump sum will give them.
It is important to remember that if you do not pay all the premiums, and the plan is cashed-in before maturity then your child could get back less than the premiums that have been paid in. Cashing in the plan early could also lead to the plan being subject to taxation.
Please read our Key Features and Product Guide inour Information Pack for further information, before applying for our Plan. You can use the links to the right to access this.
For any further details on any of our products please get in touch:
The Kingston Unity Junior Saver is our Child Tax Exempt Savings Plan. You choose the level of premium and term at the start of the plan. At the end of the plan, your child will receive the guaranteed sum assured and any bonuses that have been added to the plan.
The plan takes advantage of the £25 per month tax exempt savings allowance that only friendly societies can offer. The plan is free of tax at maturity and there is no taxation within the fund, although the society can no longer reclaim the tax credit on dividends.
You fix the amount at the start of the plan. You can pay between £5 and £25 per month, or between £50 and £270 per year. If you wish to save more than this, for children aged 10 or over there is also the Regular Saver.
Your child can hold more than one Junior Saver plan - for instance one to mature on their 18th birthday and another to mature on their 21st birthday. However, because the Junior Saver plan takes advantage of a special government tax exemption only available to friendly societies, total premiums to Junior Saver plans and other similar plans held with friendly societies cannot exceed £25 per month or £270 per year.
You will be given a minimum sum assured at onset - this is the minimum your child will receive at maturity providing all premiums have been paid.
Each year a bonus rate is declared, depending on the performance of the With Profits Fund. Any bonus declared is added to the plan. There may also be a terminal bonus at maturity. Bonuses added to the plan are guaranteed to be paid as long as the plan runs to maturity and all premiums have been paid.
It is important to remember that future bonus rates are not guaranteed and past performance cannot be used as a guide to future performance.
If you cash plan in early and at least one year's premiums have been paid then your child will receive a 'surrender value'. This is likely to be less than the premiums that have been paid in, especially in the early years. If you cash the plan in before the first year's premiums have been paid, then your child will receive nothing.
The term of the plan is fixed at the onset. Plans must run for a minimum of 10 years.
If sadly the child were to die during the term of the plan, then any premiums paid into the plan (plus interest on those premiums) would be repaid to the child's estate.
The premiums are invested in our With Profits Fund. This is a mixture of cash, equities, property and fixed interest investments. The aim of the fund is to provide a smoothed growth.
Proceeds of the plan, either at maturity or earlier surrender are always payable to the child.
The plan currently has charges of 50% of the first year's premium and 5.5% of the annual premium after the first year.You share in all the profits and losses of running the with profits fund. This will include sharing in any profits and losses from expenses of the whole fund being above or below the total of all the charges levied
The premiums are invested in the Kingston Unity With-Profits Fund which invests in a mixture of assets such as property, fixed deposits, shares and cash. Find out more »
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