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Scottish Friendly, one of the UK’s leading mutual societies, has added to its innovative range of simple savings and investment products by launching a new regular contributions plan for investors looking to put money aside for 10 years.
The Mutual Investment Bond (MiBond) is easy to set up with regular contributions of between £15 and £25 per month by direct debit. It is a friendly society tax-exempt savings plan (TESP) designed to provide growth potential through a managed portfolio of equities and a small amount of bonds and cash.
Scottish Friendly undertook extensive focus group research among the general public throughout the UK and this played an important role in the design and launch of MiBond. The bond aims to appeal to investors looking to habitually save money flexibly and benefit from the friendly society tax-free savings allowance afforded by the government. This means, under current tax law, it grows free of income and capital gains tax.
Putting aside a little each month in this way is viewed by many as an important step in planning for their financial future. Scottish Friendly’s own members reported that the assurance of knowing they have a pot of money growing for a special goal helps provide them with a sense of financial security.
Neil Lovatt, sales and marketing director at Scottish Friendly commented: “MiBond is part of a new generation of Scottish Friendly products that are built with flexibility and simplicity in mind.
“The Scottish Friendly MiBond is designed to make this process straightforward so customers can get started with a regular savings and investment habit which can not only build a cash lump sum but also gives an immediate “feel good” feeling as they know they are starting to care of the future and this “feel good factor” is reflected in the look of our promotion for MiBond.”
The announcement marks another step of product evolution for Scottish Friendly, who last year launched an entire range of family flexible savings products online, which have proved to be extremely popular with personal investors, contributing to a significant rise in Scottish Friendly’s sales.
Investments are linked to a managed portfolio of stock market and cash assets. The value of stock market investments can go down as well as up and investors may get back less than the amount invested. If the plan is cashed in early, a tax payment may be due.
Scottish Friendly is not responsible for the accuracy of the information displayed on externally linked third party websites. The Scottish Friendly Group of Companies consists of the following companies: Scottish Friendly Assurance Society Limited – Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Member of AFM, Member of ABI: Life, Savings and Investments. Scottish Friendly Asset Managers Limited – Authorised and regulated by the Financial Conduct Authority. Member of The Investment Association. Registered in Scotland No 187215: OEIC Managers, ISA Managers. Scottish Friendly Insurance Services Limited – Authorised and regulated by the Financial Conduct Authority. Registered in Scotland No 113007. SFIS (Nominees) Limited - Registered in Scotland No 397351. Head office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.