Children's Tax Exempt Savings Plan (or TESP for short) allows you to save tax-free in addition to a child's Junior ISA allowance. You can choose the term of the plan between 10 and 25 years which could make it the perfect option if you want to save for the medium to long-term.

 

There's the option to save monthly or annual amounts, which can help to build up a tax-free lump sum for a child's future. Please be aware that a surrender penalty will apply if cashed in before maturity.

​

These plans are only available through friendly societies and are a way to save tax-free in addition to your child's Junior ISA allowance. Because it is a tax-free savings plan, under current legislation, the maximum you can save is £25 a month or £270 annually (this includes any tax exempt plan(s) held with another friendly society). This plan is also a qualifying life policy

​

Anyone can have a plan or have several plans within the overall maximum levels of £25 per month or £270 annually.