12.12.08
Save with Us for a Smooth Steady Growth
Children grow so quickly which means it is essential to find out about saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond while they are children you could ease their money worries 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 property.
You can invest in a tax-free savings plan for any child with a Scottish Friendly Child Bond. It’s tax-free since it’s a friendly society savings plan, so under current financial legislation it grows free of income or capital gains tax. It’s a good way for parents, grandparents, family members and friends to make a major financial difference when the kids are older.
Put succinctly 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.
Funds accrues by means of the addition of potential yearly bonuses and at the relevant time when the bond becomes payable there’s 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 runs for a minimum of ten years, 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.It’s completely up to you. Please note if the plan is cashed in at a point prior to the end of the term, the amount the child will be paid 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 per month. Or you can make yearly 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 permitted figure of £2,340 for ten years, 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 provide £120 a year for 10 years - a total of £1,200. This provides a route for you to settle all your premiums in one fell swoop 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 appropriate for your financial needs.
