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Kids grow up fast which means it is essential 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 help them when they are older. For example helping to pay for university fees or for the deposit on a new car.

You can save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free as it’s a friendly society savings plan, which means that under today’s 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 substantial financial difference when the little ones are older.

The Child Bond is a with-profits investment plan: It invests for long-term growth as well as an element of security, in stocks and shares, fixed interest funds and cash

Funds accumulatesby way of the addition of potentialannual bonuses and when the bond reaches maturity there is a tax-free payout. The value of bonuses depends on how much profit we make and how we distribute it. Bonuses are not guaranteed.

The Child Bond lasts for a minimum of ten years, but if you want you can invest for longer if you wish - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It is completely up to you. It should be noted that 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 opt for the monthly option, you can begin 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 amount of £2,340 for ten years, this actually invests £270 a year into the Child Bond - making £2700. 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 pay all your premiums in one go and is especially popular with grandparents who like the reassurance of knowing all premiums for the entire term of the plan are taken care of.

Life cover is also included with this plan so you should consider if this is appropriate for your financial needs.

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