Save up to Twenty Five Pounds a Month and Build a Cash Sum for Your Child
Children reach adulthood fast which means it is critical to find out about saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond at this time you could save them from financial difficulties when they are older. Situations where this might prove useful might include helping to pay for university fees or for the deposit on a residence.
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, which means that under prevailing legislation it grows free of income or capital gains tax. Without doubt it is a good way for parents, grandparents, family members and friends to make a major financial difference when the little ones are older.
Put succinctly 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.
The invested amount accumulates by way of the addition of potential yearly bonuses and at the relevant time when the bond becomes payable there is a tax-free payout. The value of bonuses will be based on on how much profit we make and how we distribute it.
It is important to bear in mind that bonuses are not guaranteed.
The Child Bond can run for a minimum of ten yrs, but it is possible to invest for longer should you want – 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 be borne in mind that if the plan is cashed in before the end of the term, the amount the child will get back may be less than the amount paid in.
If you opt for the monthly option, you can make a start by saving from as little as £10 a month – up to a maximum of £25 monthly. Or you can make yearly payments of up to £270 a year.
You can also remit all of the premiums in one go through our lump sum funding plan. If you invest the maximum permitted amount of £2,340 for a decade, this actually invests £270 a year into the Child Bond – a total of two thousand seven hundred pounds. The minimum lump sum of £1,040 provides £120 a year for 10 years – a total of £1,200. This provides a way and means for you to make payment of all your premiums at once and is very popular with grandparents who like the reassurance of knowing all premiums for the full length 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.
