Save Tax Free - no Incoming or Capital Gains Tax
Children grow so quickly 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 now you could alleviate their money worries when they are older. For instance helping to pay for university fees or for the deposit on a property.
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, and as such under current fiscal law it grows free of income or capital gains tax. It’s a marvelous way for parents, grandparents, family members and friends to make a major financial difference when the childen 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.
Money grows through the addition of potential annual bonuses and when the bond matures there’s a tax-free payout. The value of bonuses is dependent on how much profit we make and how we decide to distribute it.
It should be noted that bonuses are not guaranteed.
The Child Bond may run for a minimum of ten years, but you can 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.It really is entirely 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 go for the monthly option, you can commence 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 remit all of the premiums in one go through our lump sum funding plan. If you invest the maximum permitted amount 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 for you to take care of all your premiums in one go and is especially popular with grandparents who like the reassurance of knowing all premiums for the full length of the term of the plan are taken care of.
As an added bonus, so you should consider if this is suitable for your financial needs.
