Give Your Child a Solid Savings Foundation with a Child Bond
Children grow so quickly which means it is crucial to be mindful of saving when they’re still growing up. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond now you could help them when they are older. For instance helping to pay for university fees or making a payment to secure a new car.
With this form of investment you save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free because it’s a friendly society savings plan, which means that under today’s financial legislation it grows free of income or capital gains tax. It certainly is a great way for parents, grandparents, family members and friends to make a significant financial difference when the kids are older.
Put concisely 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.
The amount you save grows by way of the addition of potential annual bonuses and at the relevant time when the bond becomes payablethere is a tax-free payout. The value of bonuses is dependent on how much profit we make and how we decide to distribute it. One should be mindful of the fact tha bonusest are not guaranteed.
The Child Bond can run for a minimum of ten yrs, but it is permissible to invest for longer should you like - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.That is entirely 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 be paid may be less than the amount paid in.
If you go for the monthly option, you can begin saving from as little as £10 a month - up to a maximum of £25 a month. 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 possible amount of £2,340 for ten years, this actually invests £270 a year into the Child Bond - a total of £2. The minimum lump sum of £1,040 yields £120 a year for 10 years - a total of £1,200. This provides a means for you to take care of all your premiums at a stroke and is something that has proved 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 expedient for your financial needs. See also our Child Trust Fund account
