Invest Your Savings with Us and Get a Head Start
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 when they are young you could aid them when they are older. For example helping to pay for university fees or providing the means to acquire a first home.
With this form of investment you save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free as it’s a friendly society savings plan, so under present-day legislation it grows free of income or capital gains tax. It’s a marvelous way for parents, grandparents, family members and friends to make a substantial financial difference when the little ones are older.
Basically 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.
The saved total grows by way of the addition of potential yearly bonuses and at the relevant time when the bond reaches maturitythere is a tax-free payout. The value of bonuses will be calculated based on how much profit we make and how we distribute it. It must be realised that bonuses are not guaranteed.
The Child Bond may run for a minimum of ten years, but you can invest for longer if you decide to – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.That is totally up to you. Please note if the plan is cashed in at a point prior to the end of the term, the amount the child will be paid may be less than the amount paid in.
If you want the monthly option, you can get started by 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 ten years, this actually invests £270 a year into the Child Bond – making £2. The minimum lump sum of £1,040 will yield £120 a year for 10 years – a total of £1,200. This provides a way and means for you to settle all your premiums at once and is especially popular with grandparents who like the reassurance of knowing all premiums for the full term of the plan are taken care of.
life cover is inluded with this plan so you should consider if this is fitting for your financial needs. See also our Child Trust Fund account
