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Homeowners&#39 child savings plan meets Sandler criteria

Homeowners Friendly Society is offering a children&#39s savings plan it says meets Ron Sandler&#39s recommendations for simple low-cost products.

The friendly society says its Better Start child savings plan is aimed at giving people of all income levels the chance to save for their children and follows recent independent research by Homeowners.

The research shows that while 79 per cent of parents and 50 per cent of grandparents say they save for their children/grandchildren, 48 per cent of parents and 23 per cent of grandparents save on a monthly or weekly basis.

It also showed that 64 per cent would be willing to commit to a long-term savings plan.

Fifty-seven per cent of parents who did not currently save said it was because they could not afford to while 25 per cent had either never got around to it or had not thought of it.

In his report last July, Sandler recommended the creation of a suite of three simple low-cost products and Homeowners says its child savings plan fits within this framework and its annual management charge also meets Sandler&#39s suggested 1 per cent cap.

Monthly premiums for the tax-free plan start at £10, with a maximum of £25 a month. Minimum investment term is 10 years.

Child savings strategist Karl Elliott says: “Our plan encourages the savings habit by enabling parents to save for their children from as little as £10 a month and is designed not only to offer excellent value but also financial simplicity.

“The lump sum produced can be used to help give the child a better start to adult life by helping towards, for example, university fees, the deposit on a new house or a car.”

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