Free Glide

Children grow up fast 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 make all the difference when they are older. For example helping to pay for university fees or to find the money for a residence.

You can 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-day fiscal law it grows free of income or capital gains tax. It’s a good way for parents, grandparents, family members and friends to make a big 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.

Funds accumulates through the addition of potential annual bonuses and when the bond maturesthere is a tax-free payout. The value of bonuses is dependent on how much profit we make and how the distribution is made. Bonuses may be payable but remember that they are not guaranteed.

The Child Bond may last for a minimum of 10 years, but you are able to invest for longer if you like – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.We leave this completely 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 receive may be less than the amount paid in.

If you want the monthly option, you can make a start by saving from as little as £10 a month – up to a maximum of £25 monthly. Or you can make once a year payments of up to £270 a year.

You can also make all of the premiums in one go through our lump sum funding plan. If you invest the maximum permitted sum 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 for you to make payment of all your premiums at a stroke and is something that is 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 suitable for your financial needs. See also our Child Trust Fund account