Open a Child Savings Account for a Lump Sum Payout
Children reach adulthood fast which means it is crucial to consider saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond in their early years you could aid them when they are older. For instance helping to pay for university fees or to find the money for a first home.
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-day financial legislation it grows free of income or capital gains tax. It’s an opportune way for parents, grandparents, family members and friends to make a significant financial difference when the childen are older.
Put succinctly the Child Bond is a with-profits investment plan: It invests for long-term growth as well as a certain degree of security, in stocks and shares, fixed interest funds and cash.
Funds accumulates by means of the addition of potential yearly bonuses and at the relevant time when the bond reaches maturity there is a tax-free payout. The value of bonuses is dependent on how much profit we make and how we distribute it.
Please be aware that bonuses are not guaranteed.
The Child Bond may run for a minimum of ten years, 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’s entirely up to you. Do not forget that if the plan is cashed in at a point prior to the end of the term, the amount the child will get back may be less than the amount paid in.
If you opt for the monthly option, you can make a start by 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 pay all of the premiums in one go through our lump sum funding plan. If you invest the maximum possible figure of £2,340 for ten years, this actually invests £270 a year into the Child Bond - a total of two thousand seven hundred pounds. The minimum lump sum of £1,040 provides £120 a year for 10 years - a total of £1,200. This provides a way and means for you to pay all your premiums in one go and is particularly popular with grandparents who like the reassurance of knowing all premiums for the whole length of the 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.
