Save up to Twenty Five Pounds a Month and Build a Cash Sum for Your Child
Children grow so quickly which means it is critical to look at saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond as they grow up you could give them a head start for 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 because it’s a friendly society savings plan, which means that under prevailing financial legislation it grows free of income or capital gains tax. Without doubt it is an opportune way for parents, grandparents, family members and friends to make a significant 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 certain degree of security, in stocks and shares, fixed interest funds and cash.
Funds accrues by means of the addition of potential annual bonuses and when the bond becomes payable there is a tax-free payout. The value of bonuses is dependent on how much profit we make and how we distribute it.
Please note that bonuses are not guaranteed.
The Child Bond may run for a minimum of ten years, but if you want you can invest for longer should you wish - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.We leave this entirely up to you. It should not be forgotten 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 decide upon the monthly option, you can make a start by saving from as little as £10 a month - up to a maximum of £25 per month. Or you can make once a year 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 sum of £2,340 for ten years, 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 will yield £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 once and is especially popular with grandparents who like the reassurance of knowing all premiums for the whole term of the plan are taken care of.
Life cover is also included with this plan, so you should consider if this is suitable for your financial needs.
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