Save with Us for a Smooth Steady Growth
Children grow up fast which means it is essential to find out about 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 assistance that will help them when they are older. For instance 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, so under present legislation it grows free of income or capital gains tax. It is a great way for parents, grandparents, family members and friends to make a major financial difference when the childen are older.
To sum up 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.
Money accrues by way of the addition of potential yearly bonuses and at the relevant time when the bond reaches maturity there’s a tax-free payout. The value of bonuses depends on how much profit we make and how we decide to distribute it.
It is important to bear in mind that bonuses are not guaranteed.
The Child Bond can run for a minimum of ten years, 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.That is totally up to you. Please note if the plan is cashed in prior to the end of the term, the amount the child will get back may be less than the amount paid in.
If you select 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 annual 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 possible sum 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 yields £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 fell swoop and is something that is 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.
This plan includes life cover, so you should consider if this is appropriate for your financial needs.
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