Save with Us for a Smooth Steady Growth
Children grow up fast 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. Situations where this might prove useful might include helping to pay for university fees or making a payment to secure 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 as it’s a friendly society savings plan, which means that under current legislation it grows free of income or capital gains tax. It can be a very welcome way for parents, grandparents, family members and friends to make a substantial financial difference when the childen 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 element of security, in stocks and shares, fixed interest funds and cash.
The invested amount grows by means of the addition of potential annual bonuses and at the specified time the bond becomes payable there’s a tax-free payout. The value of bonuses will depend on how much profit we make and how we distribute it.
It must be realised that bonuses are not guaranteed.
The Child Bond may last for a minimum of ten years, but it is possible to invest for longer should you want - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.We leave this completely up to you. Please note if the plan is cashed in before the end of the term, the amount the child will be paid may be less than the amount paid in.
If you go for the monthly option, you can make a start by 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 pay all of the premiums in one go through our lump sum funding plan. If you invest the maximum permitted figure 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 way for you to pay all your premiums at a stroke and is extremely popular with grandparents who like the reassurance of knowing all premiums for the full length of the term of the plan are taken care of.
This plan includes life cover, so you should consider if this is suitable for your financial needs.

