The Info Examiner

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 as they grow up you could help them when they are older. For example helping to pay for university fees or for the deposit on a flat.

You can invest in a tax-free savings plan for any child with a Scottish Friendly Child Bond. It’s tax-free since it’s a friendly society savings plan, and as such under today’s legislation it grows free of income or capital gains tax. It can be a wonderful way for parents, grandparents, family members and friends to make a substantial financial difference when the kids are older.

In a nutshell 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.

The invested amount accrues by means of the addition of potential yearly bonuses and at the point where the bond reaches maturity there is a tax-free payout. The value of bonuses is conditional on how much profit we make and how the distribution is made.
It should be noted that bonuses are not guaranteed.

The Child Bond can last for a minimum of 10 years, but it is permissible to invest for longer should you want - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It really is completely 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 prefer the monthly option, you can start saving from as little as £10 a month - up to a maximum of £25 monthly. Or you can make annual payments of up to £270 a year.

You can also pay all of the premiums in one go through our lump sum funding plan. If you invest the maximum possible amount 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 and means 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.

Life cover is also included with this plan, so you should consider if this is suitable for your financial needs.