Children reach adulthood fast which means it is critical to be mindful of saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond now you could make all the difference when they are older. Situations where this might prove useful might include helping to pay for university fees or to find the money for a flat.
You can save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free as it’s a friendly society savings plan, and as such under current financial legislation it grows free of income or capital gains tax. Without doubt it is a wonderful way for parents, grandparents, family members and friends to make a big financial difference when the childen are older.
In a nutshell 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.
This sum accrues by way of the addition of potential annual bonuses and at the relevant time when the bond reaches maturitythere is a tax-free payout. The value of bonuses is arrived at based on how much profit we make and how we distribute it. It should be noted that bonuses are not guaranteed.
The Child Bond runs for a minimum of ten years, but it is permissible to invest for longer if you decide to – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It is entirely up to you. It should not be forgotten that if the plan is cashed in prior to the end of the term, the amount the child will get back may be less than the amount paid in.
If you select the monthly option, you can commence saving from as little as £10 a month – up to a maximum of £25 monthly. Or you can make annual 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 figure of £2,340 for ten years, this actually invests £270 a year into the Child Bond – making £2. The minimum lump sum of £1,040 will provide £120 a year for 10 years – a total of £1,200. This provides a route for you to pay all your premiums at once and is something that is 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 expedient for your financial needs. See also our Child Trust Fund account
