What does the Growth & Security Bond offer?

The Growth & Security Bond is a With Profits Bond which is an investment plan with steady capital growth potential.

When you start a Scottish Friendly Growth & Security Bond, your money is invested in our With Profits Fund. The profits it makes in times of strong stockmarket growth are pooled to create a 'cushion' of reserves. These are distributed over time in the form of bonuses. And once a bonus is added to your Bond, you have the reassurance of knowing it cannot be taken away, unless a Market Value Adjustment (MVA) is made. Further details of the MVA can be found below and in the Key Features document.

There is no fixed interest term, giving you the flexibility to cash in your Bond whenever you want - although it is designed to provide the best growth over the medium to long term (5 years or more).

How much can I invest?

• You can start a bond with a minimum lump sum of £3,000
• Invest over £10,000 and we'll increase the amount invested for you by 1%
• You can top up your investment with any amount from £500 as often as you like
• The maximum value of your investment cannot exceed £500,000

Earn bonuses on your investment

The Growth & Security Bond is designed to grow steadily through the addition of bonuses.

To achieve growth over the long term, it invests in a wide variety of carefully selected investments that range from property to British companies. There are three types of bonuses that may be added to your Growth & Security Bond:

• Regular bonus - current bonus rate is 3.0% pa on your investment, less initial charge.
• Potential final bonus - this may be added when a Bond is cashed in, when withdrawals are made or in the event of death
• Loyalty bonus - this 2.5% guaranteed bonus is added on the 10th anniversary of your investment

Bonuses are your share of the profits made in the Fund. Scottish Friendly is a mutual company with no shareholders, so all our profits go to our members. Over time, the regular bonuses steadily and daily increase the value of units in your Bond. The bonus rate is normally reviewed at the end of each calendar year although it may change at any time. Bonuses are not guaranteed, but once a bonus is added it cannot be taken away.

Please remember that the return provided on a with profits bond depends the profit we make and how we distribute it.

How do I access my money?

Although the Growth & Security Bond should be regarded as a long-term investment (that is, for at least 5 years), you have access to your money at any time through two options:

Regular withdrawal scheme

• You can arrange to receive an income on a monthly, quarterly, half-yearly or annual basis
• Minimum withdrawal is £50
• Maximum withdrawal is 7.5% of the total amount paid into the Bond by you
• At least £500 must remain invested in your Bond
• Withdrawals can be paid to you by cheque or paid directly into the account of your choice

Remember, if the rate of withdrawal exceeds the growth of the Bond, your investment will be depleted.

Cash in your bond
You can cash in your Bond at any time, by instructing us in writing. The value of your investment will be calculated using the value of the units allocated to your Bond, plus any final bonus, on the day we receive your request

In some circumstances, if you cash in your Bond a Market Value Adjustment (MVA) may apply. This may result in the value of your investment being reduced. Scottish Friendly guarantees that there will be no MVA on specific occasions: when the regular withdrawal scheme is used, when part or all of the Bond is cashed in on the 10th anniversary of investment, or when death benefit is paid out.

What are the charges?

There is an initial charge of 5%. The charge is included as the difference between the 'offer' price, at which you buy units, and the 'bid' price, at which units are cashed in. There is no explicit annual management charge.

Apply now

Applying is easy. Simply click on the Apply Now link to download an application form and read the Key Features. Then complete it and post it to:

Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR

If you apply for this product, for your records, we recommend you print or save a copy of this and any other relevant pages together with a copy of the Key Features.