Plan for Your Child’s Future with a Scottish Friendly Child Bond
Kids 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 without delay you could make all the difference when they are older. For instance 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 because it’s a friendly society savings plan, which means that under today’s law it grows free of income or capital gains tax. It’s a marvelous way for parents, grandparents, family members and friends to make a huge 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 accumulates through the addition of potentialyearly 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 a decade, but if you want 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 really is completely up to you. It should be noted that if the plan is cashed in before the end of the term, the amount the child will receive may be less than the amount paid in.
If you choose the monthly option, you can start saving from as little as £10 a month - up to a maximum of £25 a month. Or you can make yearly payments of up to £270 a year.
You can also take care of 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 £2700. The minimum lump sum of £1,040 provides £120 a year for 10 years - a total of £1,200. This provides a means for you to take care of all your premiums in one go and is especially popular with grandparents who like the reassurance of knowing all premiums for the entire 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.
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