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. If you don't use it, you simply lose it.

The Scottish Bond is a 10-year investment for anyone aged between 16 and 64. 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 for a car or the holiday of a lifetime. However, if you cash in before the end of the term, 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 a degree of security in the form of a guaranteed minimum cash sum. The enclosed with-profits 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.

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:

• Firstly, the bond's aim is to provide competitive long-term growth plus a degree of security in the form of a guaranteed minimum cash sum at the end of 10 years. At first, your guaranteed sum will be less than your total payments into the plan over 10 years, however it's designed to grow through the addition of potential regular bonuses. You may also benefit from a more significant final bonus at the end of 10 years.
• Secondly, the long-term growth potential on your plan comes in the form of potential annual bonuses and a final bonus which may be added to your plan. The bonuses are based on the overall profitability of Scottish Friendly's investments and how it distributes them to customers like you, so the value of these bonuses cannot be guaranteed in the future. However once an annual bonus is added to your plan it is locked in and cannot be taken away. Any final bonus will be paid at the end of your term.

How it could build

Projected returns on £25 per month invested over 10 years

Projected returns for illustration only. Remember your original investment is not guaranteed and you could get 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 Plan. 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. 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.

Life cover is included

The Scottish Bond automatically includes a small element of life cover which ensures that on death your estate will receive at least you're your guaranteed minimum cash sum plus any locked in bonuses. The amount of life cover depends on your age and may be subject to medical conditions. For example, someone taking out a Scottish Bond aged 30 will have a greater level of life cover than someone aged 60. You should ensure that you consider all the benefits under this plan for your own financial needs. Please read the Key Features for full details. You should consider if life cover is appropriate for your financial needs. Please read the key features for full details.

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
60	£1381	£1874	£2367
65	£1269	£1723	£2176

Apply now

Applying is easy. Simply click on the Apply Online Now link, read the Key Features and With-Profits 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 With-Profits 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. 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.

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.

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 With-Profits Guide.