Junior Money Maker

Lets your clients invest tax-efficiently to help save for their child’s University education

Key features of the Shepherds Friendly Junior Money Maker

  • Death of the payer - If the parent/guardian is the payer and were to die once the plan has been running for 24 months, as long as they were aged under 50 when the plan started, Shepherds Friendly will take over the remaining premium payment.
  • Sickness benefit – after the child’s 5th birthday, if they become ill, the parent can claim up to £400 a week in benefits to cover the costs
  • Controlled release of funds – your client can choose the option for the child to receive the total amount in the fund upon maturity, or, they can withdraw amounts, paid to the child on an annual basis up to age 21 to help with the costs for each year of University.
  • Save from between £100 and £200 a month – with tax-exempt growth and tax-free lump sum upon maturity at 18, or after 10 years, whichever is later
  • Can be opened by grandparents and other family members – giving more people the chance to give a child they love the best start in life
  • Growth occurs through a share of the Shepherds Friendly With-Profits fund, free from income tax and capital gains tax – giving great potential for long-term growth
  • Combine with the client’s Help to Buy or Cash ISA – giving them an additional tax-efficient savings opportunity
  • Not going to University? – if your client’s child decides not to pursue higher education, they will of course still receive the full tax-free lump sum upon maturity at 18, or after 10 years, whichever is later

Further information

Our Junior Money Maker plan provides a tax-efficient investment opportunity for parents and other family members to save towards the cost of University, or to provide a useful tax-free lump sum at age 18 to help their child with whatever goals or ambitions they may have.

Important things to consider

  • How the investment performs may vary during the term of the Plan. Because of this the child could receive a higher or lower sum than your client expects at the end of the Plan and may not get back as much as they have paid in
  • The amount of bonus paid in each year is related to the investment performance of Shepherds Friendly’s funds and the total amount of sickness benefit paid out to all customers who have this type of Plan. Therefore the bonus may fluctuate from year-to-year throughout the term of the Plan
  • In poor investment conditions we may apply a Market Value Reduction (MVR). This could mean your client may get less back than they have paid in
  • If the Plan is stopped and money is taken out at any time before the end of the Plan, your client will have to pay a surrender penalty
  • The tax treatment of these Plans could change in future