Youngsters grow so quickly 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 without delay you could help them when they are older. For example helping to pay for university fees or for the deposit on a new car.

You can save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free because it’s a friendly society savings plan, which means that under today’s legislation it grows free of income or capital gains tax. It is an ideal way for parents, grandparents, family members and friends to make a significant financial difference when the little ones 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 accumulates by way of the addition of potential yearly bonuses and when the bond reaches maturity there’s a tax-free payout. The value of bonuses depends on how much profit we make and how it is distributed by us. Please note that bonuses are not guaranteed.

The Child Bond lasts for a minimum of 10 yrs, but it is possible to invest for longer if 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. Please note 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 choose the monthly option, you can begin saving from as little as £10 a month - up to a maximum of £25 a month. 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 amount of £2,340 for ten years, this actually invests £270 a year into the Child Bond - making £2,700 in total. The minimum lump sum of £1,040 will provide £120 a year for 10 years - a total of £1,200. This provides a way for you to pay all your premiums in one go and is especially 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 appropriate for your financial needs.

This entry was posted on Monday, October 6th, 2008 at 3:13 am and is filed under Finance Information, Hall Of Investment. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.