AMP is broadening its product range with its first child savings product.
The plan will be sold primarily through the tied salesforce. It was developed after feedback from its advisers showed a demand for a savings product tailored for children.
The product has 13 fund options within an Oeic structure, including socially responsible investment. Minimum monthly contribution is £25, which can be made on a child's behalf by any adult over 18. Premiums can be increased in £10 steps and money can be partially withdrawn as long as £1,000 minimum is maintained.
AMP says it costs on average £87,000 to bring up a child up to 16, taking only general only into account. It points out that the costs of supporting children after 16 – such as university education or a wedding – are considerable. It says the average cost of a university education is £18,954 and likely to rise to £27,000 in 15 years' time if inflation is taken into account.
Director of advisory services Andy Halstead says: “Our financial planners deal with people ever day who require advice to get their finances back on track. They then realise how important it is to plan their finances and many see the benefits of investing for their children to give them a financial headstart.
“We have designed a product that is simple and affordable. People have the choice of 13 funds, three of these are socially responsible funds. Only one other provider offers this option on a child savings product. It gives people the chance to invest in their children's financial and environmental future.”