MoneyBuilder
A wallet friendly way to invest
MoneyBuilder is a long term investment that helps you set some money aside for your future. It’s a wallet friendly plan - it allows you to make small investments that increase over five years to help your investment grow. Take a glance at the table below for a useful summary of the plan and visit the in detail tab for more information on MoneyBuilder.
| i Your MoneyBuilder Plan | i Things you should consider |
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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.
A wallet friendly investment
MoneyBuilder is a 15 year investment plan for UK residents, aged between 16 and 59. You start MoneyBuilder by investing small amounts of money. Payments start from as little as £10 per month. So it’s a wallet friendly way to invest your money. And it’s good to know that when you’re busy working hard so are your premiums.
Develop a regular investment habit
You can put away between £10 and £100 per month in your MoneyBuilder.
You can choose the amount you want to start with. During the first 5 years of MoneyBuilder this amount goes up by 20% each year. This helps your investment grow. After 5 years the amount you invest is frozen. For example:
| Initial monthly amount | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 - 15 |
|---|---|---|---|---|---|---|
| £10 | £10 | £12 | £14 | £16 | £18 | £20 |
| £20 | £20 | £24 | £28 | £32 | £36 | £40 |
And you may get used to putting money aside, because it could quickly become a habit. When you set up paying into your MoneyBuilder by Direct Debit and you may hardly notice the payment.
Remember the higher premiums when you decide how much to start with. It must be something you feel comfortable with. If you cash in within the first 2 years, you get nothing back. After the first 2 years, the payout may be lower than what you’ve paid in.
In some circumstances where you close your MoneyBuilder we may have to apply a Market Value Reduction (MVR). It could result in a smaller payout. You can find out more on MVR in the Key Features and 'How we invest your money' guide.
You invest a growing sum
MoneyBuilder is managed across a range of assets, aiming for long-term growth and a degree of security in the form of a guaranteed minimum cash sum after 15 years. Please go to 'How we invest your money' to see how we look after your investment.
The guaranteed minimum cash sum will depend on your age and how much you pay each month. At first, it will be less than the money you’ve paid in. But it’s designed to increase through the addition of bonuses. We deduct tax from the growth on your money so you won’t have tax to pay when your plan ends. Please note that tax treatment depends on your individual circumstances and the levels and basis of taxation may change in the future.
The main long-term growth potential comes from the addition of regular bonuses and a potential final bonus. Their value is based on the profit we make, our investment returns and the way in which we distribute these to our customers. The bonuses are not guaranteed.
With MoneyBuilder you also get life insurance. This ensures that on death your estate will receive at least your guaranteed minimum cash sum plus any locked in bonuses. The level of cover depends on your age, health and payments into your MoneyBuilder. You should consider if this is appropriate for your financial needs.
How your investment could build
Here is how your MoneyBuilder could grow over the next 15 years.
Projected values after 15 years, starting plan at age 35†
| Initial monthly amount |
Guaranteed minimum cash sum |
Projected value at 4% per year |
Projected value at 5% per year |
Projected value at 6% per year |
|---|---|---|---|---|
| £10 per month* | £2,959 | £3,580 | £3,820 | £4,080 |
| £30 per month** | £8,877 | £10,700 | £11,400 | £12,200 |
| £50 per month*** | £14,795 | £17,900 | £19,100 | £20,400 |
†Source: Scottish Friendly. These figures are only examples and the projected benefits are not guaranteed. They are based on premiums being paid for the full 15 years. They are not maximum or minimum amounts; what you get back depends on how your investments grow and the actual level of future bonuses. You could get back more or less than this. Premiums increase by 20% of the initial monthly premium at the end of each of the first 5 years of the plan as explained above.
The rates of growth have been based on our reasonable estimate of potential returns and are lower than the maximum allowable investment growth assumptions. All the figures include the deduction of the actual charges assumed on the plan.
*A total investment after 15 years of £3,240. **A total investment after 15 years of £9,720. ***A total investment after 15 years of £16,200.
Don’t 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).
Get your MoneyBuilder
Starting MoneyBuilder with Scottish Friendly is easy.
Make sure you have read and understood the Key Features and 'How we invest your money’ guide before you apply. Then you’re ready to:
- Apply online;
- Download an application form and post it to:
Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR. - Or order an information pack which we’ll send you in the post.
If you apply, we suggest printing or saving a copy of this page, other relevant pages, the Key Features and 'How We Invest Your Money' guide.
