Save up to Twenty Five Pounds a Month and Build a Cash Sum for Your Child
Children grow so quickly which means it is critical to look at saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond when they are young you could ease their money worries when they are older. Scenarios where this may prove invaluable may include helping to pay for university fees or providing the means to acquire a first vehicle.
You can invest in a tax-free savings plan for any child with a Scottish Friendly Child Bond. It’s tax-free since it’s a friendly society savings plan, which means that under today’s law it grows free of income or capital gains tax. There can be no doubting that a wonderful way for parents, grandparents, family members and friends to make a significant financial difference when the little ones 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 yearly bonuses and at the point where the bond reaches maturity 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 be aware that bonuses are not guaranteed.
The Child Bond can last for a minimum of 10 yrs, but you are free to invest for longer should you wish - 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. It should be noted that if the plan is cashed in at a point prior to the end of the term, the amount the child will be paid 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 monthly. Or you can make once a year payments of up to £270 a year.
You can also make all of the premiums in one go through our lump sum funding plan. If you invest the maximum sum of £2,340 for a decade, this actually invests £270 a year into the Child Bond - a total of two thousand seven hundred pounds. 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 in one go and is extremely popular with grandparents who like the reassurance of knowing all premiums for the entire term of the plan are taken care of.
life cover is inluded with this plan, so you should consider if this is fitting for your financial needs.
