Children grow so quickly which means it is important to consider saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond now you could help them when they are older. For instance helping to pay for university fees or for the deposit on a residence.
You can invest in a tax-free savings plan for any child with a Scottish Friendly Child Bond. It’s tax-free as 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 good way for parents, grandparents, family members and friends to make a significant financial difference when the childen are older.
Put concisely 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.
Money grows by way of the addition of potential yearly bonuses and when the bond becomes payable there’s a tax-free payout. The value of bonuses will be calculated based on how much profit we make and how it is distributed by us.
Please note that bonuses are not guaranteed.
The Child Bond can run for a minimum of ten years, but it is possible to invest for longer if you like - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It’s completely 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 get back may be less than the amount paid in.
If you want the monthly option, you can make a start by saving from as little as £10 a month - up to a maximum of £25 per month. Or you can make yearly 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 possible sum 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 provides £120 a year for 10 years - a total of £1,200. This provides a way and means for you to pay all your premiums in one fell swoop and is extremely popular with grandparents who like the reassurance of knowing all premiums for the whole term of the plan are taken care of.
Life cover is also included with this plan, so you should consider if this is appropriate for your financial needs.
