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Saving for your grandchildren

Discover how you can help build up a lump sum towards your grandchild's future with Forester Life. Capital at risk.

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A savings account for your grandchild

There’s nothing more amazing than seeing your family grow bigger and the introduction of grandchildren can make it even more special. Grandchildren are an exciting addition to the world, from hearing them call you nanny or grandad for the first time, to seeing them in their uniform on the first day of big school.

You may be thinking about not just buying them their favourite toys, but also contributing towards their future with a children's savings account.

The money you save on their behalf could be used towards university costs, getting onto the property ladder, their first car and much more. Learn more about the costs of their biggest milestones >

A Plan with Forester Life can offer a brighter future for your grandchild, find out more about Foresters >

Happy grandparents saving for their grandchild

Options to save towards your grandchild's future

Over 1.2 million customers choose to save for their child's future with us, in our Junior ISAs or Child Trust Funds (CTFs). All money added into our children’s savings Plans is locked away until the child’s 18th birthday, treating the money as a special gift for your grandchild.

A Junior ISA can only be opened by someone with parental responsibility (the Registered Contact). Although Child Trust Funds can no longer be opened, existing accounts can be transferred to Forester Life. However, this needs to be done by the person who is managing the Plan. If you have legal parental responsibility for your grandchild you are eligible to become the Registered Contact, and can open a Plan on their behalf.

The good news is that anyone can contribute to a Junior ISA or Child Trust Fund up to £9,000 each contribution year, meaning you can start saving for your grandchild's future.

Gifts cannot be reclaimed and combined amounts cannot exceed the contribution limit of £9,000, running from birthday to birthday for CTFs and each tax year for Junior ISAs. Tax treatment depends on individual circumstances and may be subject to change in the future. As with all stock market investments the value of the child’s Junior ISA or Child Trust Fund can fall as well as rise and they may get back less than has been paid in.

Grandmother with grandson on tablet who is saving money into a Junior ISA on his behalf

Junior ISAs

Junior ISAs are a tax-efficient savings Plan available to save on behalf of a child up to 18. Contributing into a grandchild's Junior ISA can open up many opportunities for their future to give them a head start into adulthood.

You can start saving into our Junior ISA or a Shariah Junior ISA from as little as £10, with a contribution allowance of £9,000 this tax year. The Registered Contact (the person with legal parental responsibility) can manage the Plan online 24/7 by setting up a MyPlans account. Anyone making a contribution can also have an online gifters account. 

If you think your family would be interested in one of our Junior ISAs for your grandchild, why not ask them to take a look. For more information, please read our guide to Junior ISAs.

Child Trust Funds

Child Trust Funds were introduced by the Government in 2005 to encourage parents to save for their child’s future. Parents of children born in the UK between 1st September 2002 and 2nd January 2011 were given a CTF monetary voucher from the Government. We are now one of the UK's largest CTF providers.

New accounts cannot be opened however you can still contribute into a Child Trust Fund and a CTF can be transferred to Foresters Financial. You can start saving from as little as £10, with a contribution allowance of £9,000 running from birthday to birthday. The Registered Contact can manage the Plan online 24/7 by setting up a MyPlans account. Anyone making a contribution can also have an online gifters account. 

If your grandchild was born in the UK between these dates, it is likely that they have a Child Trust Fund. If they do not know where it is, parents can check if their child's Child Trust Fund is with us.

For more information, please read our article 'What is a Child Trust Fund?'

Granddad with teenage grandchild who has a CTF

Saving for your grandchild with an ISA

Junior ISAs and CTFs available with Forester Life offer your grandchild a way for savings to be built up as a financial starting point into adulthood, but what if you wish to save more than the maximum contribution allowance (£9,000)?

By saving into our ISA or our Shariah ISA, you have the opportunity to give them this money at any time and you can manage the Plan yourself. You will also have the flexibility with your savings to withdraw when you wish.

An Individual Savings Account (ISA for short) is a popular, tax-efficient way to invest. There’s no UK tax to pay on any growth and income earned from your investments. The current annual ISA allowance is £20,000 this tax year and contributions start from as little as £20. Making the most of your ISA allowance every year could be a great way to help build a savings pot.

Opening an ISA means the money is not locked away until the grandchild’s 18th birthday, so they can celebrate a 16th birthday in style or start learning to drive at 17 with some of the money you saved for them! The money invested will however be in your own name, not the grandchild’s. It could even be used to help all of your grandchildren, to give them all equally bright futures. Open an ISA >

Our Savings & Investment Plan or our Shariah Savings & Investment Plan, could be another opportunity to save on behalf of your grandchild. Like our ISA, the Savings & Investment Plan invests in the stock market and could offer more growth potential rather than choosing to save with a bank or building society in cash. However, there is no investment limit which allows you to put more money away for your grandchild.

A Stakeholder Savings & Investment Plan can be opened on a single or joint life basis, with a Financial Adviser, meaning you could combine savings with a partner to contribute to your grandchild’s future. You could even open more than one Savings & Investment Plan and have these set up for each grandchild. Request an adviser visit >

Open a Stocks and Shares ISA    Open a Savings & Investment Plan


Contributing to a child's savings Plan with Foresters

As the grandparent if you don’t have legal parental responsibility for your grandchild, you’re able to set up your own MyPlans gifters account. All you need is the child’s Date of Birth and their Plan number from the Registered Contact of the Plan. Once set up you can see your payments, past performance of the fund, access personal correspondence and make further contributions online 24/7.

We also allow anyone to top up to a CTF or Junior ISA over the phone, by post or with one of our Financial Advisers. All you need is the child’s Date of Birth and their Plan number, which you can get from the Registered Contact.

If you want to see how far your money could stretch, we have a Junior ISA calculator and Child Trust Fund calculator, so you can see how much their Plan could be worth at age 18.

What happens to their money at age 18?

If your grandchild has a Junior ISA or Child Trust Fund in their name, they will be able to access their savings at age 18. Even just visualising your grandchild turn 18 is an incredible thought, but this will be an exciting milestone for them and they will be able to access the money you, other family and friends have saved on their behalf.

You can learn more about the importance of their 18th birthday and their savings invested with us here for a CTF or here for a Junior ISA.

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Meet with a Financial Adviser to discuss your options at your convenience.