junior easy save

Junior easy save is a friendly society tax exempt savings policy. The premiums are invested in our unitised With Profits Sub Fund. As it is tax exempt this means that the growth is exempt from tax. In addition the lump sum that is paid out at the end is tax free.

This offers a valuable benefit, allowing you to save for children under 16 who are UK residents, while sheltering the savings from tax and allowing them to enjoy a tax free cash lump sum at the end of the chosen term.

Remember, inflation will reduce the buying power of the lump sum and affect what can be bought in the future. The tax treatment of the plan could change in the future.

You can opt to pay either annually or monthly by Direct Debit into a junior easy save. Monthly premium options are between £15 & £25 in £1 increments and annual premium options are between £160 & £270 in £10 increments. The tax-exempt savings allowances are set by the government.

The money is invested in the Engage Mutual With Profits Sub Fund, which invests in a mix of assets including shares, fixed interest securities, commodities, property, currency, cash and other structured investments. The Engage Mutual With Profits Sub Fund may also invest directly in fixed interest securities.

The Engage Mutual With Profits Sub Fund does not pay interest. What the child gets back depends on the performance of the underlying investments held in the fund. Investment performance cannot be guaranteed.

Bonuses are added to the plan and these gradually increase its value. A final bonus may be added when the plan is cashed in at the end of the premium payment term. Please, bear in mind that future bonuses depend on investment performance and are not guaranteed.

If all the premiums due have been paid and the plan has reached the end of the payment term, there are 28 days in which to cash in the plan to ensure your child will get back at least what has been paid in.

If the child will be under 16 at the end of the term we will write to the parent/guardian to tell them what options are available. If the child will be 16 or over at the end of the term we will send the information to them

If the policy is cashed in outside of the guarantee period the child may get back less than has been invested.

No, junior easy save is a regular savings plan and does not accept lump sum payments.

• there is a policy fee of £1 per month for monthly policies or £12 per year for annual policies. This is deducted from premiums before they are invested.

• there is an annual management charge. This is 1.25% of the policy value and is deducted on a weekly basis.

• in year 1, there is a charge of 50% of each premium paid in. This is deducted before premiums are invested.  

• there is a life cover charge which depends on the child’s age, amount of life cover and the plan value (see ‘Key Features’ in useful docs).

The charges we make may increase. 

No, there are no early closure penalties. However please note:

• if the plan is cashed in before one year's premiums have been paid your child will not get anything back.

• if, within 10 years, the policy is closed or premiums stop, income tax may be payable if the final value of the policy exceeds the premiums paid

• a Market Value Reduction (MVR) or Surrender Adjustment may be applied to the lump sum on surrender. This would effectively reduce the payout to the child. For more information on the MVR please download the Consumer Friendly PPFM document in useful docs.

• If the policy is cashed in during the early years your child is unlikely to get back as much as has been paid in.

• It’s also important to be aware that if you close your plan outside of the guarantee period, you could get back less than you paid in.

No, junior easy save can be funded only by Direct Debit.

Yes you can, you don’t have to be the parent/guardian in order to pay the premiums.

Once the child reaches 16, control of the policy will revert to the child and any letters, statements or other communications will be addressed to them.

Yes, providing that the total savings amount for friendly society tax exempt savings plans held by you with ourselves or any other friendly society, does not exceed £25 a month or £270 a year.