Open a Child Savings Account for a Lump Sum Payout
Children grow up fast which means it is critical to start thinking about saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond now you could make all the difference when they are older. Scenarios where this may prove invaluable may include helping to pay for university fees or for the deposit on a residence.
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. There can be no doubting that a very welcome way for parents, grandparents, family members and friends to make a substantial financial difference when the kids 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 element of security, in stocks and shares, fixed interest funds and cash.
Funds grows by way of the addition of potential yearly bonuses and at the relevant time when the bond becomes payable there is a tax-free payout. The value of bonuses will be calculated based on how much profit we make and how we decide to distribute it.
Please be aware that bonuses are not guaranteed.
The Child Bond runs for a minimum of 10 yrs, but you are able 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 completely up to you. Do not forget that if the plan is cashed in before the end of the term, the amount the child will be paid may be less than the amount paid in.
If you decide upon the monthly option, you can get started by saving from as little as £10 a month - up to a maximum of £25 per month. Or you can make yearly 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 sum of £2,340 for ten years, this actually invests £270 a year into the Child Bond - making twenty seven hundred pounds in total. The minimum lump sum of £1,040 provides £120 a year for 10 years - a total of £1,200. This provides a route for you to take care of all your premiums at a stroke and is particularly popular with grandparents who like the reassurance of knowing all premiums for the complete term of the plan are taken care of.
This plan includes life cover, so you should consider if this is suitable for your financial needs.
