How a Scottish Friendly Child Bond Wll Help Your Childrens Savings Grow
Children grow up fast which means it is critical to find out about saving when they’re .not yet adults. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond as they grow up you could give them a degree of protection from future economic downturns when they are older. Scenarios where this may prove invaluable may include helping to pay for university fees or for the deposit on a new car.
With this form of investment you save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free since it’s a friendly society savings plan, so under present law it grows free of income or capital gains tax. It is a useful way for parents, grandparents, family members and friends to make a big financial difference when the kids are older.
The Child Bond is a with-profits investment plan: It invests for long-term growth as well as an element of security, in stocks and shares, fixed interest funds and cash.
Money accrues through the addition of potential yearly bonuses and at the specified time the bond maturesthere’s a tax-free payout. The value of bonuses will be based on on how much profit we make and how we decide to distribute it. Bonuses are not guaranteed.
The Child Bond can run for a minimum of ten years, but it is permissible to invest for longer should you wish – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.That is completely up to you. It should be borne in mind that 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 would like to choose 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 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 – 700. The minimum lump sum of £1,040 yields £120 a year for 10 years – a total of £1,200. This provides a route for you to settle all your premiums in one go and is something that has proved popular with grandparents who like the reassurance of knowing all premiums for the entirety of the term of the plan are taken care of.
As an added bonus so you should consider if this is fitting for your financial needs. See also our Child Trust Fund account
