Scottish Bond
Make your money grow with tax-free savings
- Invest your savings over 10 years
- Save tax-free - no income tax or capital gains tax to pay
- Save £15 to £25 a month
What does the Scottish Bond offer?
The Scottish 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.
The Scottish Bond is a 10 year savings plan for anyone aged between 16 and 55. Just set aside an affordable amount each month so that you could have a sizeable lump sum to look forward to. Just imagine, it could help pay towards a wedding, home improvement, a car or you could simply save because its a worthwhile thing to do. However, if you cash in before the end the 10 year savings period, you may not get back as much as you have paid in.
When you invest with the Scottish 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.
Your money will be invested in the Scottish Friendly With-Profits fund. This 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 at the end of 10 years. 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 and how much you pay in each month. Please remember if you cash in your bond early, 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 or £180, £225 or £270 a year.
How could the Bond grow?
The Scottish Bond offers a convenient way of building your savings and your payout is made up of two parts:
- 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 at the end of 10 years. At first, your guaranteed minimum cash sum will be less than your total payments into the bond, however it is designed to grow through the addition of bonuses.
- Potential bonuses: the main long-term growth potential of your Scottish 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 your original investment is not guaranteed and you could get back less than the amounts shown.
Source: Scottish Friendly. Based on someone aged 30 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. 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 investments grow and the actual levels 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. (For more details on the effect of charges on your bond, please see the key features).
Life cover is included
As a condition of the tax benefits your bond automatically 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. The amount of life cover depends on your age, your health and the amount your pay in. For example, someone taking out a Scottish Bond aged 30 will have a greater level of life cover than someone aged 55. You should ensure that you consider all the benefits under this bond for your own financial needs.
The table below gives an indication of how much life cover you could expect.
| Age next birthday |
Monthly saving for 10 year plan | ||
|---|---|---|---|
| £15 | £20 | £25 | |
| 25 | £1527 | £2072 | £2617 |
| 30 | £1525 | £2070 | £2614 |
| 35 | £1520 | £2063 | £2606 |
| 40 | £1512 | £2052 | £2592 |
| 45 | £1501 | £2036 | £2572 |
| 50 | £1478 | £2006 | £2534 |
| 55 | £1442 | £1957 | £2472 |
Apply now
Applying is easy. Simply click on the Apply Online Now link, read the key features and 'how we invest your money' guide then complete and submit your application today. Or if you'd prefer to apply by post click on the download application link, to download an application form, 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 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.
Or, you can request an information pack to be sent to you in the post. This pack includes further Scottish Bond information and an application form.
If you are in any doubt as to whether this product is suitable for you please contact your Financial Adviser.
