Children reach adulthood fast which means it is crucial to look at saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond at this time you could help them when they are older. Scenarios where this may prove invaluable may include helping to pay for university fees or to find the money for 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, and as such under present-day fiscal law it grows free of income or capital gains tax. It can be a useful way for parents, grandparents, family members and friends to make a big 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 degree of security, in stocks and shares, fixed interest funds and cash.

Funds accumulates by means of the addition of potential annual bonuses and at the relevant time when the bond becomes payable 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 is important to bear in mind that bonuses are not guaranteed.

The Child Bond can run for a minimum of ten years, but it is permissible to invest for longer if you wish - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It really is totally up to you. Do not forget 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 go for 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 annual 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 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 yields £120 a year for 10 years - a total of £1,200. This provides a means for you to make payment of all your premiums in one fell swoop and is something that has proved popular with grandparents who like the reassurance of knowing all premiums for the complete 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.