Get Your Child off to a Flying Start with a Scottish Friendly Child Bond
Youngsters reach adulthood in no time 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 immediately you could make all the difference 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, which means that under current legislation it grows free of income or capital gains tax. It’s a great way for parents, grandparents, family members and friends to make a substantial financial difference when the kids 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
Money grows through the addition of potential yearly bonuses and when the bond matures there is 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 runs for a minimum of ten yrs, 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 is entirely up to you. It should be noted that 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 yearly 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 amount of £2,340 for ten years, this actually invests £270 a year into the Child Bond - making a total of £2,700. 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 pay all your premiums at once 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.
This plan includes life cover so you should consider if this is appropriate for your financial needs.
