Save with Us for a Smooth Steady Growth
Children reach adulthood fast which means it is critical to consider saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond at this time you could give them a head start for when they are older. For instance helping to pay for university fees or making a payment to secure a first vehicle.
You can invest in a tax-free savings plan for any child with a Scottish Friendly Child Bond. It’s tax-free since it’s a friendly society savings plan, and as such under present law it grows free of income or capital gains tax. It can be a very welcome way for parents, grandparents, family members and friends to make a significant financial difference when the childen are older.
Basically the Child Bond is a with-profits investment plan: It invests for long-term growth as well as a degree of security, in stocks and shares, fixed interest funds and cash.
The invested amount grows by means of the addition of potential yearly bonuses and at the relevant time when the bond matures there is a tax-free payout. The value of bonuses depends on how much profit we make and how the distribution is made.
Please note that bonuses are not guaranteed.
The Child Bond lasts for a minimum of ten yrs, but it is possible to invest for longer should you decide to – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.We leave this entirely up to you. It should be noted that if the plan is cashed in before the end of the term, the amount the child will be paid may be less than the amount paid in.
If you would like to choose the monthly option, you can get started by saving from as little as £10 a month – up to a maximum of £25 a month. Or you can make annual payments of up to £270 a year.
You can also make all of the premiums in one go through our lump sum funding plan. If you invest the maximum permitted figure of £2,340 for ten years, this actually invests £270 a year into the Child Bond – a total of two thousand seven hundred pounds. The minimum lump sum of £1,040 yields £120 a year for 10 years – a total of £1,200. This provides a way for you to take care of all your premiums at a stroke and is extremely popular with grandparents who like the reassurance of knowing all premiums for the entire term of the plan are taken care of.
Life cover is also included with this plan, so you should consider if this is suitable for your financial needs.
