University Savings Plan icon

University Savings Plan

Est 1826

Making saving for a child's university education straightforward

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The University Savings Plan is now closed to new applications. Our Junior Money Maker offers the same benefits.

The University Savings Plan is closed to new applications. We do have a range of children’s savings plans available to parents and extended family which you can view online. Our Junior Money Maker offers all of the same great benefits as the University Savings Plan, including more control over when your child has access to their money, benefits for you if your child is off school for more than four weeks due to sickness, and our commitment to maintaining all premiums into the plan if the premium payer dies during its term and is aged under 50 at the start of the plan.

If you have a University Savings Plan and would like more information about the plan, then you can either view our FAQ’s or you can contact our customer services team on 0161 428 1212 or by email at [email protected]


Find out more about
our Junior Money Maker »

Features of our University Savings Plan


Open for any child icon

Open for any child

We know that grandparents and other family members want to give a child they care about the best possible start in life, and that’s why we offer applications for the University Savings Plan to extended family, as well as parents.

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A plan designed to cover the costs

With the maximum annual tuition fee rising to £9,000 in 2012, students now face a more financially daunting prospect when they go to university. Our University Savings Plan lets you save between £100 and £200 monthly tax-efficiently with the aim of covering the cost of tuition fees as well as other essential expenses.

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Not going to university?

If you open a plan for a child and they then decide not to pursue higher education, they will of course still receive the full tax-free lump sum when they reach age 18, or after 10 years, whichever is later. This can then be used as they wish for a housing deposit, a first car or help them with the first step of their career.

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Tax breaks on growth and final payout

When you invest with us in a University Savings Plan the child’s money will grow tax-exempt, and when any money is withdrawn from the plan it will be tax-free, helping their savings to go further. You don’t get these tax advantages in a normal savings account.

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Combine with a Child Trust Fund or Junior ISA

If you’ve used your child’s annual tax-efficient allowance in their Child Trust Fund or Junior ISA, you can still open and save into our University Savings Plan to further maximise their tax-efficient savings.

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Invested in stocks and shares

Our University Savings Plan invests in a mix of assets, the majority of which is in stocks and shares. The reason we do this is with the aim of providing the child with a higher return on their investment over the long-term than would be available in a cash-based account. For more information about how we invest, please click the ‘Our Fund’ tab at the top of this page.

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A straightforward investment

Unlike some other investment accounts, you don’t need to make any decisions about which funds or investments to choose from in our University Savings Plan. Instead we invest on your behalf in our With-Profits Fund, and returns on the plan will depend on the performance of the fund throughout the investment period. For more information about how we invest, please click the ‘Our Fund’ tab at the top of this page.

Apply for a Shepherds Friendly plan online and get a Love2Shop voucher code worth up to £50* once you’ve made your sixth payment into the plan

Apply for a Shepherds Friendly plan online and get a Love2Shop voucher code worth up to £30*

You can redeem this online with hundreds of retailers...

Plus many more!

* Click here for terms & conditions

What savings plan may best suit your needs?

Discover what options are available to you, whether you're looking to start a savings plan for yourself or a child.

If you would like assistance in applying or would like more information regarding the plan, you can speak to a member of our customer services team by calling 0800 526 249


IMPORTANT THINGS TO CONSIDER

  • How the investment performs may vary during the term of the Plan. Because of this the child could receive a higher or lower sum than you expect at the end of the plan and may not get back as much as you have paid in.
  • The amount of bonus paid each year is related to the investment performance of Shepherds Friendly’s funds and the total amount of sickness benefit paid out to all customers who have this type of Plan. Therefore the bonus may fluctuate from year to year throughout the term of the Plan.
  • In poor investment conditions we may apply a Market Value Reduction (MVR). This could mean you get back less than you have paid in.
  • If the Plan is stopped and money is taken out at any time before the end of the Plan you will have to pay a surrender penalty.
  • The tax treatment of these Plans could change in the future.

All references to taxation are to UK taxation and are based on Shepherds Friendly Society's understanding of current legislation and H M Revenue and Customs practice which may change in the future. For our With Profits plans investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract. Please ensure that you read the full terms and conditions of this plan which are available from your financial adviser or by contacting us directly.

Please note: No advice has been provided by Shepherds Friendly. If you are in any doubt as to whether a plan is suitable for you, we recommend getting in touch with a financial adviser, who will be happy to take you through what options are available. Should you consult a financial adviser there could be a cost involved and you should confirm this cost beforehand.