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Children grow so quickly 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 as they grow up you could ease their money worries when they are older. For example helping to pay for university fees or to find the money for a new car.

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, which means that under present financial legislation it grows free of income or capital gains tax. Without doubt it is a marvelous way for parents, grandparents, family members and friends to make a substantial financial difference when the kids are older.

In essence 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 grows through the addition of potential yearly bonuses and at the relevant time when the bond matures there is a tax-free payout. The value of bonuses will depend on how much profit we make and how we decide to distribute it.
Please be aware that bonuses are not guaranteed.

The Child Bond may last for a minimum of ten years, but you can invest for longer should you wish - 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. Please note 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 elect the monthly option, you can make a start by 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 take care of all of the premiums in one go through our lump sum funding plan. If you invest the maximum permitted 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 yields £120 a year for 10 years - a total of £1,200. This provides a way and means for you to settle all your premiums in one fell swoop and is very popular with grandparents who like the reassurance of knowing all premiums for the full 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.