Invest Your Savings with Us and Get a Head Start
Children reach adulthood fast which means it is crucial to find out 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 help them when they are older. Scenarios where this may prove invaluable may include helping to pay for university fees or to find the money for a place to live.
You can invest in a tax-free savings plan for any child with a Scottish Friendly Child Bond. It’s tax-free because it’s a friendly society savings plan, and as such under present-day financial legislation it grows free of income or capital gains tax. It’s a good way for parents, grandparents, family members and friends to make a significant financial difference when the kids 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 when the bond reaches maturity there is a tax-free payout. The value of bonuses is arrived at based on how much profit we make and how we decide to distribute it.
Bonuses are not guaranteed.
The Child Bond may run for a minimum of ten years, 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.It is completely up to you. It should not be forgotten that if the plan is cashed in prior to the end of the term, the amount the child will be paid may be less than the amount paid in.
If you would like 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 make the payment 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 – making twenty seven hundred pounds 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 in one go and is extremely popular with grandparents who like the reassurance of knowing all premiums for the entire 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.
