Give Your Child a Solid Savings Foundation with a Child Bond
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 now you could alleviate their money worries when they are older. Scenarios where this may prove invaluable may include helping to pay for university fees or for the deposit on a new car.
You can invest in a tax-free savings plan for any child with a Scottish Friendly Child Bond. It’s tax-free as it’s a friendly society savings plan, which means that under today’s law it grows free of income or capital gains tax. It’s a superb way for parents, grandparents, family members and friends to make a major financial difference when the childen are older.
The Child Bond is a with-profits investment plan: It invests for long-term growth as well as an element of security, in stocks and shares, fixed interest funds and cash.
Funds grows through the addition of potential yearly bonuses and at the specified time the bond reaches maturity there’s a tax-free payout. The value of bonuses will be calculated based on how much profit we make and how it is distributed by us.
It must be realised that bonuses are not guaranteed.
The Child Bond may run for a minimum of ten yrs, but you are free to invest for longer if you decide to - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It’s entirely up to you. Do not forget that 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 would like 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 take care of all of the premiums in one go through our lump sum funding plan. If you invest the maximum sum of £2,340 for a decade, 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 yield £120 a year for 10 years - a total of £1,200. This provides a way for you to make payment of all your premiums in one go and is something that is popular with grandparents who like the reassurance of knowing all premiums for the full term of the plan are taken care of.
This plan includes life cover, so you should consider if this is fitting for your financial needs.
