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Save with us for a Smooth steady growth
Children grow so quickly which means it is essential to start thinking about saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond in their early years you could help them when they are older. Situations where this might prove useful might include helping to pay for university fees or making a payment to secure a new car.
You can save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free since it’s a friendly society savings plan, which means that under current financial legislation it grows free of income or capital gains tax. There can be no doubting that it is a great way for parents, grandparents, family members and friends to make a huge financial difference when the little ones are older.
To sum up the Child Bond is a with-profits investment plan: It invests for long-term growth as well as a certain degree of security, in stocks and shares, fixed interest funds and cash. The invested amount accrues through the addition of potential yearly bonuses and at the specified time the bond becomes payable there is a tax-free payout. The value of bonuses depends on how much profit we make and how it is distributed by us. It must be realised that bonuses are not guaranteed.
The Child Bond can last for a minimum of ten years, but you are able 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 really is completely up to you. It should be borne in mind that if the plan is cashed in prior to the end of the term, the amount the child will get back may be less than the amount paid in. If you elect 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 once a year payments of up to £270 a year.
You can also make the payment of all of the premiums in one go through our lump sum funding plan. If you invest the maximum sum of £2,340 for a 10 year period, this actually invests £270 a year into the Child Bond. The minimum lump sum of £1,040 will yield £120 a year for 10 years - a total of £1,200. This provides a way for you to take care of all your premiums in one go and is something that is popular with grandparents who like the reassurance of knowing all premiums for the entire term of the plan are taken care of. This particular plan has life cover included with it so you should consider if this is suitable for your financial needs.
