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Tax-efficient investments for a child

Imagine what your child could do with a tidy lump sum on their 18th, 21st or 25th birthday. They might put it towards their first car or university tuition fees. Our Junior Bond lets you invest regular set amounts, over the long-term, and help give a child those choices in the future.

As long as you’re over 18, you can open one for any child who’s 15 or younger. But you’ll need to check that they don’t already have one or if they do that they’re not already using their Tax-Exempt Savings Plan (TESP) allowance of £25 a month or £270 a year to the full.

So it can make the most of the money, our Junior Bond is invested in a tax-exempt fund. The final lump sum the child receives is free from income tax and capital gains tax provided you’ve paid into the Junior Bond for at least 10 years. As our Junior Bond invests in stocks and shares, it's worth remembering that its value can fall as well as rise. This is normal for this kind of investment, but it does mean the child could get back less than has been paid in.

Please remember that tax advantages depend on the child's individual circumstances, and could change in the future.

UP TO

£25

E-VOUCHER

We’d like to give you a little gift to say thank you for your application. Open our Junior Bond online and set up a Direct Debit between £15 and £24.99, and we’ll send you £15 Amazon e-voucher. Set a Direct Debit for £25 and we’ll send you a £25 Amazon e-voucher. See terms and conditions »

How much? How long? Your choice

You can invest from £15 to £25 a month (or £165 to £270 annually) over a fixed period – anywhere between 10 and 25 years. So you choose when the child gets the money. It could make a wonderful birthday present on their 18th, 21st or 25th birthday.

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Potential for growth

With the Junior Bond, you’re investing in stocks and shares, so there’s good potential for the child’s investment to grow over the long-term. In fact, over every 18-year period in the last 50 years, stocks and shares have generally given better returns than bank or building society accounts* (where the money you put in is protected).

Of course, good returns in the past don’t guarantee good returns in the future. And because the Junior Bond invests in stocks and shares, its value can fall as well as rise. This is normal for investments in stocks and shares, but it does mean the child could get back less than you’ve paid in.

*Barclays Equity Gilt Study March 2017. Average annual real rate of return based on Barclays indices.

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Easy and affordable

With our Junior Bond, you invest just £15-£25 a month for at least 10 years. For more information about eligibility see the Questions and answers section. The child will also have their JISA or CTF allowance in addition to this.



Good potential for growth

Our Junior Bond invests in stocks and shares so has good potential to grow over the long-term. But because the value can fall as well as rise, the child could get back less than was paid in.



Tax-efficient

It’s a long-term savings plan, which allows you to invest for a child’s future tax efficiently, free from income and capital gains tax provided you’ve paid in for at least 10 years. Remember that tax advantages depend on your and the child's individual circumstances and may change in the future.



Owned by you

Proud to be a mutual, we’re owned by you, our customers, so everything we do is genuinely about putting our customers first.



Experienced and trusted.

We have 40 years' experience and look after over £7 billion of family money for over 2 million customers.


Some more important things to note

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The tax advantages depend on individual circumstances

The tax advantages of the Junior Bond depend on your individual circumstances, and the child's, and could change in the future.

The Junior Bond is a ‘qualifying policy’

If the child has one of these policies, regular yearly or monthly payments will be made and the policy will have an initial payment term of at least 10 years. The policy will also include life cover. There’s an overall limit of £3,600 a year per child on the amount you can pay into qualifying policies. So you’ll need to check if the child has other policies like this. You can find out more about this limit on the Junior Bond application pages in the Junior Bond application pack.

Picking a fund

Both of our Junior Bond funds aim to grow over the long-term, but invest differently.

Family Sovereign Fund

This fund invests in a wide range of investments, mainly UK and overseas shares, fixed-interest investments, property and alternative investments (like hedge funds and money market instruments).

Please read the Important Information Booklet »

Family Sovereign Fund factsheet »

Key Information Document »

Apply online

Family Charities Ethical Exempt Fund

This fund is currently only invested in the Family Charities Ethical Trust, which invests mainly in UK shares of companies in the FTSE4Good UK 50 Index.

Please read the Important Information Booklet »

Family Charities Ethical Exempt Fund factsheet »

Key Information Document »

Apply online

Request a pack

If you prefer, we can post you our full application pack, for you to read and share with your family members.

Request a pack

All rights in the FTSE4Good UK 50 Index (the “Index”) vest in FTSE International Limited (“FTSE”). “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE under licence.

The Family Charities Ethical Exempt Fund has been developed solely by Family Assurance Friendly Society Limited. The Index is calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Family Charities Ethical Exempt Fund and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Family Charities Ethical Exempt Fund. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Family Charities Ethical Exempt Fund or the suitability of the Index for the purpose to which it is being put by Family Assurance Friendly Society Limited.

Questions and answers about our Junior Bond

Ready to apply?

To help you decide, please read the Important Information booklet, Key Information document and fund factsheet...

How to Apply

Once you've read and understood the Important Information booklet, Key Information document and fund factsheets - and you know which fund you want - you can apply right here, online in just 10 minutes.
Apply online

If you prefer, we can post you our full application pack, for you to read and share with your family members.
Request a pack

Talk to us

You can also apply over the phone by calling us free on:

0800 731 7433*

We'll be here from 9am to 7pm Monday to Friday and 9am to 1pm on a Saturday.

*We might record your call to help improve our training and for security purposes. We hope you don't mind. Calls to 0800 numbers are normally free from UK landlines and mobile phones.

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As OneFamily does not provide advice, please read all the product info and remember your child’s capital is at risk.

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