My Kid's Flexible Plan
Tax-free with parental control
Stay in charge to help them
With Scottish Friendly's My Kid’s Flexible Plan you make a tax-free investment for your child, but remain in control of how the money is spent. You choose to invest over 15 to 18 years, but have the option to exit the plan earlier. The table below provides all the plan detail and things you should consider. For more information on My Kid's Flexible Plan please visit the in detail tab.
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No advice has been provided by Scottish Friendly in relation to this plan. If you are in any doubt as to whether this plan is suitable for you, you should contact a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk. Advisers may charge for providing such advice and should confirm any cost beforehand.
Stay in charge to help them
Thinking about tax-free investments or a kid’s savings account for your child with parental control? The option of My Kid’s Flexible Plan may appeal to you. With My Kid’s Flexible Plan you make a tax-free investment for kids, but you keep control over how the money is spent.
Tax-free investments for kids
My Kid’s Flexible Plan is an investment plan for UK residents, aged between 16 and 64. If you’re in that group, you’re allowed to invest up to £25 per month tax-free with a friendly society such as Scottish Friendly.
With My Kid’s Flexible Plan – an adult tax-exempt savings plan (TESP), you use all or some of that money to make investments for kids. But, while you have the intention of giving the money to your child, the plan stays in your name. Your TESP allowance is over and above other tax-free allowances such as ISAs.
With My Kid’s Flexible Plan you don’t pay tax on the growth of your investments (although like ISAs and pensions, tax is automatically deducted from UK share dividends). And there’s no tax to pay if you cash in after 10 years. Please note that tax treatment depends on your individual circumstances and the levels and basis of taxation may change in the future.
When you start your My Kid’s Flexible Plan you choose to invest for 15 to 18 years. This gives your investment plan long-term growth potential plus a tax-free lump sum. But you can of course exit your investment plan earlier, just as you see fit.
If you need your money earlier than planned, no problem. You have the flexibility to take your money out whenever you need to. With My Kid’s Flexible Plan you won’t get penalised by us if you need to take your money out of the investment plan earlier, because we don’t charge you for an early payout. However, you may have to pay tax on profits if you cash in your investment before 10 years. For details, please see Key Features.
You stay in control
Unlike other investments for kids, the money from My Kid’s Flexible Plan is paid out to you, because you’re using your tax-free investment allowance to invest on behalf of your child.
So you keep control and decide how the money is spent. Just in case the little rascal wants to blow it all on a whim!
Develop a regular kids’ savings and investment habit
My Kid’s Flexible Plan may also fit the bill if you want to develop a regular savings and investment habit.
What’s special about My Kid’s Flexible Plan is that you’re in control, have access to the investments, and you can start it any time – even before your child is born.
You simply begin by putting away a small amount every month. That’s the regular bit. How much depends on you. The minimum is £15 and the tax-free limit is £25 per month. This limit is set by the Government. As long as you haven’t used up your tax exempt savings allowance either with us, or another friendly society you can invest in My Kid’s Flexible Plan.
Putting money aside for your child could quickly become a habit. When you set up paying into My Kid’s Flexible Plan by Direct Debit, you choose the day the money leaves your account. Make it payday and you may hardly notice the payment.
About growth and risks
Your My Kid’s Flexible Plan money is invested in the Scottish Friendly UK Tracker Fund. The fund closely tracks the performance of shares in the stock market, investing in British household names such as Tesco, BSkyB and BT.
We regularly review our funds and what they’re tracking. So hopefully, as the value of the funds rise, your investment can grow. Plus, annual dividends are reinvested in the fund to bolster long-term growth. Of course, as you know, share prices go down as well as up and you’re not guaranteed to get back your original investment.
With us, you only pay a small cost for the life cover that’s automatically included.
Investments for kids with life cover for you
Should something happen to you while you’re paying into My Kid’s Flexible Plan, we cannot console your loved ones, but at least they’ll have some financial comfort.
With My Kid’s Flexible Plan you get life cover. The level of cover and any deductions for the cost of cover depends on your age and monthly payments in My Kid’s Flexible Plan.
We hope of course that the life cover won’t be necessary, so that you’ll be able to enjoy the rewards of your investment with your child.
Get My Kid’s Flexible Plan
Submitting your application for My Kid’s Flexible Plan with Scottish Friendly is safe and easy.
Make sure you have read and understood the Key Features for this investment plan then simply apply online for investments for kids.
If you apply, we suggest printing or saving a copy of this page, other relevant pages and the Key Features.
How your money could grow
It’s impossible to tell you the exact return you may get in the future but we can give you a rough idea. Take a look at what you might get back if you start a Flexible Plan with Scottish Friendly.
Projected returns on £25 per month invested over 18 years*
Projected returns for illustration only. Remember your original investment is not guaranteed and you could get back less than the amounts shown.
Investing in the stock market is not without its risks because shares can rise and fall and you could get back less than you've paid in.
Source: Scottish Friendly. Based on someone aged 30 at outset investing £25 per month. *Total amount invested £5,400. These figures are only examples and are not guaranteed. They are based on premiums being paid for the full 18 years. They are not minimum or maximum amounts. What you get back depends on how your investment grows and on the tax treatment of the investment. You could get back more or less than the figures projected above and the total amount invested. The annual rates of growth for the illustration have been based on our reasonable estimate of potential returns and are the maximum projection rates permissible by the Financial Services Authority. All the figures include the deduction of the actual charges assumed on the plan. Do not forget that inflation would reduce what you could buy in the future with the amounts shown. (For more details on the effect of charges on your plan, please see the Key Features).
