Long Term Savings You Can Count on
Children grow so quickly which means it is crucial to find out about saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond as they grow up you could ease their money worries when they are older. For instance helping to pay for university fees or to find the money for a first home.
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 present legislation it grows free of income or capital gains tax. It certainly is an ideal way for parents, grandparents, family members and friends to make a substantial 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 certain degree of security, in stocks and shares, fixed interest funds and cash.
Money accrues by means of the addition of potential annual bonuses and at the relevant time when the bond matures there is a tax-free payout. The value of bonuses will be calculated based on how much profit we make and how it is distributed by us.
Please be aware that bonuses are not guaranteed.
The Child Bond can last for a minimum of 10 years, but you are able to 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 totally up to you. It should be borne in mind that if the plan is cashed in at a point prior to the end of the term, the amount the child will receive may be less than the amount paid in.
If you go for the monthly option, you can start saving from as little as £10 a month – up to a maximum of £25 per month. Or you can make once a year 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 possible sum 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 yield £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 full term of the plan are taken care of.
Life cover is also included with this plan, so you should consider if this is fitting for your financial needs.
