Young Saver Plan

A tax-efficient savings plan that anyone can open for a child they love

Key features of the Shepherds Friendly Young Saver Plan

  • Sickness benefit – after the child’s 5th birthday, if they become ill, the parent can claim up to £400 a week in benefits to help cover the costs
  • Save from as little as £7.50 to £100 a month – with annual lump sum Direct Debits also an option
  • Can be opened for any child – parents, family members and friends can open the plan with permission from the child’s parents or guardians
  • Flexibility in choosing what you pay in – as the Plan is a long-term savings plan running for a minimum of 10 years – we allow clients to review and change their payments whenever they like
  • Tax-exempt growth and tax-free lump sum on maturity
  • Can be added to Child Trust Fund or Junior ISA – giving them an additional tax-efficient savings opportunity
  • Option to help with school costs – your client can choose to withdraw up to 25% of the savings when their child reaches age 11, to help towards the cost of secondary school

Further information

Our Young Saver Plan lets your clients save for the future of a child they love. Unlike a normal savings account with a bank or building society, our Young Saver Plan is tax-efficient, meaning there will be no income tax or capital gains tax to pay on the growth of the savings, and the child’s final lump sum can be accessed tax-free.

Important things to consider

  • Your client may get back less than they have paid in
  • Early encashment penalties, which would reduce the amount of the final payout
  • Bonus rates vary from year to year depending on the performance of our investments and the amount of sickness claims experienced. In some years we may not pay out any at all
  • If money is taken out at age 11, this will reduce the amount the child receives at the end of the Plan