Children grow up fast which means it is important 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 aid them when they are older. Situations where this might prove useful might include helping to pay for university fees or making a payment to secure a place to live.

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, so under current financial legislation it grows free of income or capital gains tax. Without doubt it is an ideal way for parents, grandparents, family members and friends to make a substantial 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 certain element of security, in stocks and shares, fixed interest funds and cash.

Funds accrues through the addition of potential yearly bonuses and when the bond becomes payable there’s a tax-free payout. The value of bonuses will be based on on how much profit we make and how we distribute it.
Bonuses are not guaranteed.

The Child Bond can last for a minimum of ten years, but you can invest for longer if you want – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It’s totally up to you. It should be borne in mind that if the plan is cashed in at a point prior to 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 begin 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 make the payment of all of the premiums in one go through our lump sum funding plan. If you invest the maximum permitted figure of £2,340 for a 10 year period, 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 particularly popular with grandparents who like the reassurance of knowing all premiums for the whole term of the plan are taken care of.

This particular plan has life cover included with it, so you should consider if this is suitable for your financial needs.