Phoenix Customer Care Limited has teamed up with Scottish Friendly to give you the chance to start investing for the future.
What does the Tax-Free & Friendly Bond offer?
The Tax-Free & Friendly Bond is a great way to make the most of your tax-free allowance. The Government lets you invest up to £25 a month tax-free with a friendly society. You can use this tax-free savings allowance even if you already have an ISA. It's your right by law. But if you choose not to save with a friendly society, you simply lose this benefit.
Tax-free and efficient
The Tax-Free & Friendly Bond is a 10 year with-profits savings bond for anyone aged between 16 and 54.
When you invest with the Tax-Free & Friendly Bond, you're saving tax-free in two ways:
- First, unlike most investments and savings accounts, your money grows free from tax (other than tax on dividends from UK shares).
- Second, you don't pay tax on the payout when your bond matures.
However, if you cash in before the end of the 10 year savings period, you may not get back as much as you have paid in. If you cash in within the first 2 years, you will get nothing back.
How much can I save?
You can choose to save £15, £20 or £25 a month.
A guaranteed minimum cash sum after 10 years…
Your bond is invested in our With-Profits fund which is managed across a range of assets for long-term growth, as well as providing a degree of security in the form of a guaranteed minimum cash sum after 10 years. The 'How we invest your money' guide provides full details of how we go about managing your money.
When you take out a Tax-Free & Friendly Bond, you have the reassurance of knowing that after 10 years you will get back a guaranteed minimum cash sum that will be at least equal to all of your premiums. Your bond is designed to grow through the addition of bonuses.
…and potential bonuses
The main long-term growth potential of your Tax-Free & Friendly Bond is through the addition of regular bonuses and a potential final bonus.
The value of any regular and final bonus we add is based on how much profit we make, our actual charges and investment returns and how we distribute this to members. Future bonuses are not guaranteed.
How your savings could build
Projected returns on £25 a month invested over 10 years*.
Projected returns for illustration only. Remember you could get back less or more than the amounts shown, although your original investment of £3,000 is guaranteed at the end of 10 years.
Source: Scottish Friendly. Based on someone aged 30 next birthday at outset saving £25 per month. *Total amount invested £3,000.
The annual 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 bond.
These figures are only examples and the projected benefits are not guaranteed. All the figures include the deduction of the actual charges asumed on the bond. These figures are only examples and the projected benefits are not guaranteed. They are based on premiums being paid for the full 10 years. They are not maximum or minimum amounts; what you get back depends on how your investment grows and the actual level of future bonuses. You could get back more or less than this but you will get a guaranteed minimum cash sum that will be at least equal to all your premiums.
Do not forget that inflation would reduce what you could buy in the future with the amounts shown. (For details on the effect of deductions on your bond, please see ‘What are the charges?’ section of the Key Features document).
Life cover is automatically included
In addition, as a condition of the tax benefits, your bond includes a small element of life cover which ensures that on death your estate will receive at least your guaranteed minimum cash sum plus any locked in bonuses. You should ensure that you consider all the benefits under this bond for your own financial needs.
Apply now
Applying is easy:
- click on the Apply Now link
- read the Key Features and ‘How we invest your money’ guide
- then complete your application form and post it to:
Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR
When you start saving with us, you'll receive a gift. Choose either a £15 Marks & Spencer voucher or a £15 High Street voucher. Don't forget to select which gift you would like on your application form. Your gift is issued after your first premium has been collected.
If you are in any doubt as to whether this product is suitable for you please contact your Financial Adviser.
