Invest Your Savings with Us and Get a Head Start
Children grow so quickly which means it is crucial to be mindful of saving when they’re .not yet adults. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond immediately you could put them on a sound footing with their budgets when they are older. Scenarios where this may prove invaluable may include helping to pay for university fees or making a payment to secure a residence.
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, so under today’s financial legislation it grows free of income or capital gains tax. It is a good 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 a degree of security, in stocks and shares, fixed interest funds and cash.
Funds grows through the addition of potential annual bonuses and when the bond becomes payablethere’s a tax-free payout. The value of bonuses will be based on on how much profit we make and how we distribute it. Please be aware that bonuses are not guaranteed.
The Child Bond can run for a minimum of ten years, but you are able to invest for longer should you like – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.We leave this totally up to you. Do not forget 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 want the monthly option, you can make a start by saving from as little as £10 a month – up to a maximum of £25 monthly. Or you can make single twelve monthly 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 possible sum of £2,340 for ten years, this actually invests £270 a year into the Child Bond – a total of £2. The minimum lump sum of £1,040 yields £120 a year for 10 years – a total of £1,200. This provides a route for you to pay all your premiums at a stroke and is something that is popular with grandparents who like the reassurance of knowing all premiums for the complete 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. See also our Child Trust Fund account
