Reader's Digest have teamed up with Scottish Friendly to give you the chance to start investing for the future.

MoneyBuilder is a 15 year plan that makes starting to save as painless as possible and gives you the chance to invest in treating yourself. In today's climate, it's also nice to know you will have money set aside to help your financial security.

Starting from as little as £10 per month, MoneyBuilder is the wallet-friendly way to begin saving for the future if you're aged 59 or under. And, it's good to know that whilst you're busy working hard so are your savings.

Here's how it works:

• You can start your savings from as little as £10 a month or up to £100 each month, so there is always a savings amount to suit you and your lifestyle.
• The sum you choose to save will then go up by 20% each year for the first 5 years, which helps your savings grow gradually at a rate you can afford.

 

So, if you start paying in £10 per month in year one, your premiums will steadily rise until they reach £20 per month at the end of year five. The table below shows an example of how your premiums would increase with our low start feature:

Initial Monthly Savings Amount	Year 1	Year 2	Year 3	Year 4	Year 5	Years 6-15
£10	£10	£12	£14	£16	£18	£20
£20	£20	£24	£28	£32	£36	£40

 

Remember the higher premiums when you decide how much to start with; it's got to be something you'll feel comfortable with because if you cash in your plan early, you may not get back as much as you've paid in. If you cash in within the first 2 years, you will get nothing back.

If you cash in early, in some circumstances we may also have to apply a Market Value Reduction, which could further reduce the amount we pay you.

The sooner your start saving, the better. If you start saving just £50 per month now, it could add up to over £19,000¹ after 15 years. The table below shows how your savings can build depending on the monthly savings amount you choose:

Initial Monthly Savings Amount	Guaranteed Minimum Cash Sum	Projected values after 15 years, starting plan at age 352
		4%	5%	6%
£103	£2,959	£3,580	£3,820	£4,080
£304	£8,877	£10,700	£11,400	£12,200
£505	£14,795	£17,900	£19,100	£20,400

 

1. Based on someone aged 35 at outset paying £50 a month initially, assuming future investment growth of 5% each year.
2. 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. Do not forget that inflation would reduce what you could buy in the future with the amounts shown. Premiums increase by 20% of the initial monthly premium at the end of each of the first five 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. For further details on the effects of deductions on your plan, please see The Early Years section of the Key Features.
3. A total investment after 15 years of £3,240.
4. A total investment after 15 years of £9,720.
5. A total investment after 15 years of £16,200.

 

Your plan is managed across a range of assets for long-term growth plus a degree of security in the form of a guaranteed minimum cash sum. The 'How we invest your money' guide provides full details of how we go about managing your money.

Your actual guaranteed minimum cash sum will depend on your age, health and how much you pay in each month. At first your guaranteed minimum cash sum will be less than your total payments into the plan, however, it's designed to grow through the addition of potential regular bonuses. Your payout will be free of taxes under current law as tax on investment gains is paid by Scottish Friendly over the duration of the plan.

The main long-term growth potential of your MoneyBuilder is through the addition of regular bonuses and a potential final bonus.

The value of any regular or final bonus we add is based on how much profit we make, our actual charges and investment returns and how we decide to pay it out to members.

In addition, your plan 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 plan for your own financial needs.

To apply simply click on the Apply Now link to download an application form and read the Key Features and 'How we invest your money' guide. Then complete it and post it to:

Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR

When you start saving with us, you'll receive a gift. You can choose £15 Marks & Spencer vouchers or £15 worth of High Street vouchers. Don't forget to select which gift you would like on your application form.

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 and 'How we invest your money' guide.

*Subject to availability