Children 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 at this time you could give them a head start for when they are older. For example helping to pay for university fees or to find the money for a residence.

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 today’s fiscal law it grows free of income or capital gains tax. Without doubt it is an ideal way for parents, grandparents, family members and friends to make a significant financial difference when the little ones are older.

In a nutshell 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 accrues by means of the addition of potential yearly bonuses and at the point where the bond matures there’s a tax-free payout. The value of bonuses is conditional on how much profit we make and how we decide to distribute it.
Please note that bonuses are not guaranteed.

The Child Bond may run 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 totally up to you. It should not be forgotten that if the plan is cashed in at a point prior to the end of the term, the amount the child will receive may be less than the amount paid in.

If you prefer 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 yearly 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 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 will provide £120 a year for 10 years - a total of £1,200. This provides a way for you to make payment of all your premiums in one fell swoop and is very popular with grandparents who like the reassurance of knowing all premiums for the entire term of the plan are taken care of.

As an added bonus, so you should consider if this is appropriate for your financial needs.