Tax Free Savings and Investment for Your Child
Children grow up fast which means it is important to find out about saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond at this time 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 property.
You can invest in a tax-free savings plan for any child with a Scottish Friendly Child Bond. It’s tax-free as it’s a friendly society savings plan, and as such under present financial legislation it grows free of income or capital gains tax. There can be no doubting that a wonderful way for parents, grandparents, family members and friends to make a substantial financial difference when the childen are older.
Put concisely 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 accumulates through the addition of potential yearly bonuses and when the bond becomes payable there’s a tax-free payout. The value of bonuses will be based on on how much profit we make and how we distribute it.
Bonuses are not guaranteed.
The Child Bond may run for a minimum of ten yrs, but you are free to invest for longer should 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 entirely up to you. It should not be forgotten 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 decide upon 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 take care of 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 yields £120 a year for 10 years - a total of £1,200. This provides a way for you to make payment of all your premiums at once and is something that has proved popular with grandparents who like the reassurance of knowing all premiums for the entire term of the plan are taken care of.
Life cover is also included with this plan, so you should consider if this is fitting for your financial needs.
