Plan for Your Child’s Future with a Scottish Friendly Child Bond
Youngsters grow so quickly which means it is essential to consider saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s child bond without delay you could make all the difference when they are older. For instance helping to pay for university fees or for the deposit on a first home.
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 present legislation it grows free of income or capital gains tax. It is a marvelous way for parents, grandparents, family members and friends to make a substantial financial difference when the childen are older.
In essence 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
Money accumulates by way of the addition of potential yearly bonuses and when the bond reaches maturity there’s a tax-free payout. The value of bonuses will depend on how much profit we make and how it is distributed by us. Bonuses are not guaranteed.
The Child Bond lasts for a minimum of 10 years, but you can 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 is entirely up to you. It should be noted that if the plan is cashed in before the end of the term, the amount the child will receive may be less than the amount paid in.
If you select the monthly option, you can begin 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 amount of £2,340 for ten years, this actually invests £270 a year into the Child Bond - making £2,700 in total. The minimum lump sum of £1,040 provides £120 a year for 10 years - a total of £1,200. This provides a means for you to pay all your premiums at once and is particularly 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 appropriate for your financial needs.
