Save up to Twenty Five Pounds a Month and Build a Cash Sum for Your Child
Comments: 0 - Date: February 8th, 2009 - Categories: Your Finance Resources
Children grow up fast which means it is important 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 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 property.
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 prevailing legislation it grows free of income or capital gains tax. It is an ideal way for parents, grandparents, family members and friends to make a significant financial difference when the little ones are older.
Put concisely 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 annual bonuses and at the specified time the bond becomes payablethere is a tax-free payout. The value of bonuses will be calculated based on how much profit we make and how we decide to distribute it. It must be realised that bonuses are not guaranteed.
The Child Bond runs for a minimum of 10 years, but you are free to invest for longer if you choose to – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It is totally up to you. Please note 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 have a preference for the monthly option, you can commence 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 take care of all of the premiums in one go through our lump sum funding plan. If you invest the maximum amount of £2,340 for ten years, this actually invests £270 a year into the Child Bond – 700 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 and means for you to settle all your premiums at a stroke and is very 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.
This plan includes life cover so you should consider if this is expedient for your financial needs. See also our Child Trust Fund account
