Children reach adulthood fast which means it is crucial to consider saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond now you could save them from the stress of money worries when they are older. For example helping to pay for university fees or providing the means to acquire a property.
You can save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free because it’s a friendly society savings plan, so under prevailing financial legislation it grows free of income or capital gains tax. There can be no doubting that a good way for parents, grandparents, family members and friends to make a huge financial difference when the childen are older.
Basically the Child Bond is a with-profits investment plan: It invests for long-term growth as well as a certain element of security, in stocks and shares, fixed interest funds and cash.
Money accrues through the addition of potential yearly bonuses and at the relevant time when the bond reaches maturitythere is a tax-free payout. The value of bonuses is dependent on how much profit we make and how it is distributed by us. It should be noted that bonuses are not guaranteed.
The Child Bond may run for a minimum of a decade, but it is permissible to invest for longer should you choose to - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.We leave this totally 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 receive may be less than the amount paid in.
If you opt for the monthly option, you can begin saving from as little as £10 a month - up to a maximum of £25 per month. Or you can make single twelve monthly 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 amount of £2,340 for a 10 year period, this actually invests £270 a year into the Child Bond - 700. The minimum lump sum of £1,040 will yield £120 a year for 10 years - a total of £1,200. This provides a route for you to settle all your premiums at once 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 appropriate for your financial needs. See also our Child Trust Fund account