How a Scottish Friendly Child Bond Wll Help Your Childrens Savings Grow
Children grow so quickly which means it is essential to be mindful of saving when they’re still growing up. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond as they grow up you could aid them when they are older. Situations where this might prove useful might include helping to pay for university fees or providing the means to acquire a flat.
You can save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free as it’s a friendly society savings plan, which means that under today’s legislation it grows free of income or capital gains tax. It’s a very welcome way for parents, grandparents, family members and friends to make a significant financial difference when the kids are older.
Put succinctly 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.
The invested amount grows through the addition of potential yearly bonuses and at the point where the bond becomes payablethere is a tax-free payout. The value of bonuses depends 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 last for a minimum of a decade, but you are free to invest for longer should you choose to – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It is completely 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 be paid may be less than the amount paid in.
If you want the monthly option, you can begin 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 permitted figure of £2,340 for a decade, this actually invests £270 a year into the Child Bond – making £2. The minimum lump sum of £1,040 provides £120 a year for 10 years – a total of £1,200. This provides a way and means for you to pay all your premiums in one fell swoop and is particularly 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 apposite for your financial needs. See also our Child Trust Fund account
