Invest in your child’s future by choosing a Scottish Friendly Child Bond
Children grow up fast which means it is critical to start thinking about saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s child bond without delay you could give them a head start for when they are older. For example helping to pay for university fees or for the deposit on a new car.
You can save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free because it’s a friendly society savings plan, which means that under present legislation it grows free of income or capital gains tax. It’s an ideal way for parents, grandparents, family members and friends to make a substantial financial difference when the little ones are older.
In essence the Child Bond is a with-profits investment plan: It invests for long-term growth as well as an element of security, in stocks and shares, fixed interest funds and cash
Funds accumulates by way of the addition of potential annual bonuses and at the point where the bond matures there’s a tax-free payout. The value of bonuses is dependent on how much profit we make and how it is distributed by us. Bonuses are not guaranteed.
The Child Bond lasts for a minimum of ten years, but you can invest for longer if you wish - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.That is completely up to you. Please note if the plan is cashed in before the end of the term, the amount the child will receive may be less than the amount paid in.
If you choose the monthly option, you can start saving from as little as £10 a month - up to a maximum of £25 monthly. Or you can make annual payments of up to £270 a year.
You can also take care of all of the premiums in one go through our lump sum funding plan. If you invest the maximum amount of £2,340 for a 10 year period, this actually invests £270 a year into the Child Bond - £2700 in total. The minimum lump sum of £1,040 will provide £120 a year for 10 years - a total of £1,200. This provides a means for you to pay all your premiums at once and is especially popular with grandparents who like the reassurance of knowing all premiums for the entire term of the plan are taken care of.
This plan includes life cover so you should consider if this is suitable for your financial needs.
