Kids grow so quickly which means it is essential 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 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 as it’s a friendly society savings plan, so under present law it grows free of income or capital gains tax. It is an ideal way for parents, grandparents, family members and friends to make a big financial difference when the childen 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 grow through the addition of potential yearly bonuses and when the bond reaches maturity there’s a tax-free payout. The value of bonuses depends on how much profit we make and how it is distributed by us. Please note that bonuses are not guaranteed.
The Child Bond lasts for a minimum of a decade, but you can 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.That is entirely up to you. Please note if the plan is cashed in prior to the end of the term, the amount the child will receive may be less than the amount paid in.
If you opt for the monthly option, you can begin 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 pay all of the premiums in one go through our lump sum funding plan. If you invest the maximum sum of £2,340 for ten years, this actually invests £270 a year into the Child Bond - making £2,700 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 way for you to take care of all your premiums in one go and is particularly 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 also included with this plan so you should consider if this is appropriate for your financial needs.
