Children reach adulthood fast which means it is essential to find out about saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond at this time you could aid them when they are older. For instance helping to pay for university fees or providing the means to acquire 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, so under today’s law it grows free of income or capital gains tax. Without doubt it is an ideal way for parents, grandparents, family members and friends to make a significant financial difference when the little ones are older.
Put succinctly 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 accumulates by means of the addition of potential annual bonuses and at the point where the bond becomes payable there is a tax-free payout. The value of bonuses will be calculated based on how much profit we make and how we decide to distribute it.
Please note that bonuses are not guaranteed.
The Child Bond runs for a minimum of ten years, but it is possible to invest for longer if you want – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.That is completely up to you. Do not forget that if the plan is cashed in at a point prior to the end of the term, the amount the child will get back may be less than the amount paid in.
If you elect the monthly option, you can commence saving from as little as £10 a month – up to a maximum of £25 per month. Or you can make annual payments of up to £270 a year.
You can also remit all of the premiums in one go through our lump sum funding plan. If you invest the maximum possible figure of £2,340 for ten years, this actually invests £270 a year into the Child Bond – making twenty seven hundred pounds in total. 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.
life cover is inluded with this plan, so you should consider if this is suitable for your financial needs.
