These are two completely separate things. The amount that you apply for is the overall amount that you have estimated that you might need over the period of your children’s education. Let’s say for the moment that you apply for £60,000. If your application is approved you will receive a Secta Flexiplan that makes funds of up to £60,000 available to you at any time over the term.

Now, although you might have £60,000 available to call upon, you may decide you only need to drawdown say £5,000 or £10,000 to start with – and this is the drawdown amount you will pay interest on. It means you’re only paying for funds you use, and not the full £60,000 (unless of course you decide to drawdown the full £60,000). As you draw down more funds over the period of your children’s education, the amount you pay interest on will grow too – but still only on the money actually spent.