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Saving for Education

Plans to suit your finances

Save money through a plan that suits your finances

If you want to put money aside for education, then you can embark upon any number of savings plans which will yield either income, capital or both. So here are some ideas for the kinds of savings schemes that might suit you:

  • ISAs (Individual Savings Accounts)

    With tax-free returns, these investment vehicles allow for up £7,000 a year to be invested. You can invest in a Maxi-ISA or Mini-ISA, but not both in the same tax year:

  • Maxi ISA

    Invest your full £7,000 annual entitlement in stocks and shares which, whilst high-risk, are potentially the highest- yielding.

    OR

  • Mini ISA

    Choosing up to three providers, you can spread your annual £7,000 investment, creating a personalised portfolio to match your needs. Your investment spread must be:

    • Up to £3,000 a year in stocks and shares
    • Up to £3,000 in cash
    • Up to £1,000 in life assurance

  • TESSA-only ISAs

    If you have a maturing TESSA (Tax-Exempt Special Savings Accounts), you can re-invest up to £9,000 into a TESSA ISA, in addition to any other ISAs you have - providing it is done within 6 months of maturity. This must be original capital, not any accrued interest.

  • Other investments

    • Unit Trusts and Open-Ended Investment Companies (OEICs)

      Money placed in a Unit Trust, OEIC is pooled with those of other savers, and the net amount is invested by a professional Fund Manager, usually in the Stock Market.

    • Investment trusts

      These are companies that invest in other companies, and are listed on the Stock Exchange. Investment trusts often buy in the services of a specialist fund management company

  • National Savings and Investments

    These offer a wide range of accounts and bonds, such as Children's Bonus Bonds and Pensioner Bonds, which have advantages for higher-rate taxpayers. Rates of return and tax benefits on these savings schemes vary regularly, so it's worth comparing different schemes to find out which would suit you. Available through the Post Office.

  • Bonds

    These can generate handsome profits. Your initial investment may or may not be guaranteed - and returns on your investment may be fixed or linked to current stock market performance:

    • With Profits Bonds

      Offered by insurance companies, money is invested in the insurance company's own With Profits fund. This will then invest in shares, fixed interest stocks, gilts (government bonds) and property.

    • Guaranteed Income Bonds

      Guarantee that your initial investment sum will be paid back in full at the end of the term, during which you will be paid a fixed income. Capital does not increase during the term, but interest rate won't change, irrespective of fluctuations.

  • Stocks and Shares

    Stock markets should always rise, but they often fluctuate, so they should never be regarded as a short-term investment option. If you do play the markets, remember that any loss you sustain is only an 'on paper' loss until you decide to cash in your stocks and shares - so it's always worth waiting until the market improves.

  • Investment Bond

    Can be used for growth or income. Invest in wide range of investment funds, can be stocks & Shares, gilts, corporate bonds, cash etc. Tax advantages for Higher Rate Tax Payers (HRT) who may be Basic Rate Tax Payers (BRT) in future. Not suitable for Non-Tax Payers (NTP) as cannot re-claim tax but it is deducted at source.

Endsleigh Financial Independent Tailoring is a trading name of Endsleigh Independent Financial Services Limited which is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Independent Financial Services Limited. Company No: 4132605 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.