Invest Your Savings with Us and Get a Head Start
Children grow so quickly which means it is crucial to look at 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. Scenarios where this may prove invaluable may include helping to pay for university fees or making a payment to secure a residence.
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, which means that under prevailing financial legislation it grows free of income or capital gains tax. There can be no doubting that a marvelous way for parents, grandparents, family members and friends to make a significant financial difference when the childen are older.
Put succinctly 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.
Funds accumulates by way of the addition of potential yearly bonuses and at the specified time the bond reaches maturity there is a tax-free payout. The value of bonuses depends on how much profit we make and how the distribution is made.
It must be realised that bonuses are not guaranteed.
The Child Bond lasts for a minimum of 10 yrs, but it is possible to invest for longer should you like – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It is completely up to you. It should not be forgotten 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 would like to choose the monthly option, you can get started by 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 take care of 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 decade, this actually invests £270 a year into the Child Bond – making twenty seven hundred pounds in total. The minimum lump sum of £1,040 provides £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 very popular with grandparents who like the reassurance of knowing all premiums for the entirety of the 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.
