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FAQs

How do I apply for Youngster Bond Extra?

Just call on 0844 824 2013† to request an application pack or ask us any questions about the Youngster Bond Extra.

How much can I pay in each month?

You can pay in a fixed amount from £10 to £25 a month for any number of whole years from 10 to 25. In order to make the most of the plan, you may want to pay in more than the minimum. Some families choose to invest some of their Child Benefit each month.

Is there any risk?

The Youngster Bond Extra is a traditional with-profits plan, investing in a fund which holds a mix of different asset types including company shares, government bonds, securities and cash. Even though the values of the different assets will go up and down over time, this spread of investments should mean a much less bumpy ride than, for example, a plan that’s linked to the value of company shares only.

Although the exact amount is not guaranteed, the plan does guarantee a minimum lump sum payout at the end of your chosen investment period. Although not guaranteed, the aim is then to increase the value of the plan each year by adding a bonus based on how well the fund has performed during the previous year. Once they’ve been added, these bonuses increase the guaranteed minimum amount payable at the end of the period. However, both the bonuses, and the minimum sum, would be reduced if the plan was cancelled early.

A final bonus may also be added when the plan ends, although this isn’t guaranteed. A more detailed explanation of the Youngster Bond Extra can be found in the information pack. To request a pack please call 0844 824 2013†.

Is there anything else I should know?

Even though you will be making the monthly payments, the plan will belong to your child right from the very start. In effect, each payment you make is a gift to your child, and when the plan ends the money belongs to them to use as they wish. Only one person at a time can pay into the Youngster Bond Extra. Although The Children's Mutual can communicate with you while your child is under 18, if the plan is set up to continue beyond their 18th birthday they will communicate with them once they turn 18.

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