What does the Child Bond offer?
The Scottish Friendly Child Bond is a tax-free with-profits plan, which runs for a minimum of 10 years, which you can take out for any child under 16 that you care about. The table below provides the plan detail and things you should consider. For more information on Child Bond please visit the in detail tab.
| i Your Child Bond |
i Things you should consider |
- Help ensure your child gets off to a good start in life by investing from £10 to £25 a month and using their tax-free savings allowance over 10 years or more.
- The child gets a guaranteed minimum cash sum at the end of your selected term.
- The guaranteed minimum cash sum can grow through the addition of regular bonuses.
- The guaranteed minimum cash sum may be increased by a final bonus which is related to the investment performance of the Scottish Friendly With-Profits Fund.
- No profits are paid to city shareholders meaning they can be reinvested for the benefit of Scottish Friendly customers.
- Take out a Child Bond for a child currently aged under 16 and who is a UK resident.
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- Tax-free means the fund your plan invests in grows free of income and capital gains tax (other than tax on dividends from UK shares). Tax law may change in future.
- If you cash in your plan early, the child may not get back as much as you have paid in. If you cash in within the first 2 years, the child will get nothing back.
- The amount of the guaranteed minimum cash sum depends on how much you pay in and the length of the savings period. It will initially be less than the amount invested over the investment term.
- Future bonus levels depend on investment returns and expenses and how Scottish Friendly decides to distribute profits to customers. As such, they cannot be guaranteed.
- The plan is the property of the child at all times.
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Find out more
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.
