Parent’s Flexible Plan

A tax-free child investment that you control

Start investing from just £15 a month

If you’re investing for your child’s future, you might want to choose how the money is spent. Parent's Flexible Plan lets you build a tax-free investment for your kids — but you stay in control.

With a Parent's Flexible Plan you’re investing for your child — but the plan stays in your name. So you can start investing for your youngster’s financial future, then decide how to use it.

The table below provides all the plan detail and things you should consider. For more information on Parent's Flexible plan please visit the detail tab.

At a glance Things you should consider
  • Invest £15 to £25 a month tax-free for at least 10 years and a maximum of 18 years.
  • You have complete control over the plan and can cash in at any time.
  • Potential returns from the UK stock market are designed to outperform a cash investment over the long term.
  • Your money will be invested in a UK Tracker Fund, which features top UK firms like BT and BSkyB.
  • As the plan belongs to you, it includes a small amount of life cover for yourself as a condition of the tax benefits.
  • Stock market investments can fall as well as rise, you could receive less than you paid in.
  • If the plan is cashed in before 10 years, tax charges may apply and £50 will be deducted from the plan value.
  • You are using your own tax exempt savings plan allowance to invest for a child.
  • The cost of life cover for you is included as a small part of the plan's charges. The older you are, the higher this will be.

Tax Information

Tax Information
  • Tax treatment depends on your individual circumstances and tax law may change in the future.
  • Tax-free means the fund your plan invests in grows free of income and capital gains tax (other than tax on dividends from UK shares).
  • You can only invest a maximum of £25 a month in a Parent's Flexible Plan. As a tax-exempt savings plan, it forms part of the £3,600 that you can invest each year in a qualifying endowment life policy.
  • The Parent's Flexible Plan is only available for UK residents aged between 16 and 64.

Find out more 


No advice has been provided by Scottish Friendly in relation to this plan. If you are in any doubt as to whether this plan is suitable for you, you should contact a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk. Advisers may charge for providing such advice and should confirm any cost beforehand.


With a Parent’s Flexible Plan, you’re in charge

More information on the plan

 The detail

How your money could grow

What you might get back for the child

 How your money could grow

Invest in your child's future

Want to invest for your child’s future but also stay in control? The Parent’s Flexible Plan lets you put away a small amount each month tax-free. But because it’s all in your name, you keep total control and can choose how it’s to be used once the child is old enough.

Unlike other investments for kids, the money is paid to you

A tax-free way to invest for them

Scottish Friendly’s Parent's Flexible Plan is a tax-exempt investment open to all UK residents aged between 16 and 64. Using the long-term potential of the stock market it aims to make your money grow while offering a shelter from the taxman.

With Parent’s Flexible Plan you don’t pay tax on the growth of your investments (although like ISAs and pensions, tax is automatically deducted from UK share dividends). And there’s no tax to pay if you cash in after 10 years. But remember, it depends on individual circumstances and tax laws could change in the future.

When you start your Parent's Flexible Plan, you invest for a maximum of 18 years. This gives your investment plan long-term growth potential as well as a tax-free lump sum. As with all stock market investments, your investment can go down as well as up and you could get back less than you have paid in.


As flexible as you want it

You can start a Parent's Flexible Plan at any time — even before your child is born. And because it’s flexible, it lets you develop a regular savings habit by giving you the choice of how much to invest each month. You can put away anything from £15 to the tax-free limit of £25 per month. As long as you haven't used up this allowance either with us, or another friendly society, you're able to invest in the Parent's Flexible Plan.

And if you want to make things easy and pay by Direct Debit, we’ll let you pick the day the money leaves your account. Choose payday and you may hardly even notice it.


Take the money early if you need to

You can contribute to a Parent's Flexible Plan for a maximum of 18 years, but you should aim to invest for at least 10 years. However, because you’re in control, if you want the money earlier it’s no problem. You can cash in the plan whenever you like — but bear in mind there’ll be a £50 deduction if it’s cashed in before 10 years, as well as the possibility of paying tax on any profits.


Invest in British high street names

Your money will be invested in our UK Tracker Fund, which closely follows stock market performance and invests in major names like Tesco, BT and BSkyB. We regularly review our funds and what they are tracking. If the fund’s value rises, then your child’s investment could too. And annual dividends are reinvested in the fund to encourage growth over the long-term. Of course, as you know, share prices go down as well as up and you could get back less than you have paid in.

in order to qualify for the plan’s tax benefits, you’ll automatically receive a small amount of life cover. The level of cover and any resulting deductions depend on your age and your monthly payments, so it’s up to you to decide if it’s suitable for your financial needs.


You hold the purse strings

Unlike other child investments, the money in a Parent's Flexible Plan is paid to you, the parent — and you decide what to do with it. This is because you’re investing on behalf of your child using your own annual tax-exempt investment allowance set by the Government. So, instead of handing over a lump sum to Junior, you keep total control of the cash and can choose when and how it’s going to be spent — just in case they need a little guidance.


Open a Scottish Friendly Parent’s Flexible Plan

Submitting your application for Parent's Flexible Plan with Scottish Friendly is safe and easy.

Make sure you have read and understood the Key Features for this investment plan then simply apply online.

If you apply, we suggest printing or saving a copy of this page, other relevant web pages and the Key Features.

Apply Online>


Our Parent’s Flexible Plan — at a glance

Features of the Parent's Flexible Plan

 At a glance

How your money could grow

What you might get back for the child

 How your money could grow

What might I get back from my plan?

The Parent's Flexible Plan is an investment plan linked to the stock market, so we can't tell you exactly how much you may get in the future.

The graph below gives you an idea of what you might get back from your investment if you start a Scottish Friendly Parent's Flexible Plan.

Projected returns on £25 per month invested over 18 years*

£5,630 projected value at 2% per year, £7,460 projected value at 5% per year, £10,000 projected value at 8% per year.

Projected returns for illustration only. Remember your original investment is not guaranteed and you could get back less than the amounts shown.

Investing in the stock market is not without it's risks because shares can rise and fall and you could get back less than you've paid in.

Based on someone aged 30 next birthday investing £25 per month. *Total amount invested £5,400. Based on current tax law, which may change.

These figures are only examples and are not guaranteed. They are based on premiums being paid for the full 18 years. They are not minimum or maximum amounts. What you get back depends on how your investment grows and on the tax treatment of the investment. You could get back more or less than the figures projected above and the total amount invested. 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 plan, please see the Key Features).

The annual rates of growth for the illustration have been based on our reasonable estimate of potential returns and are subject to the maximum projection rates permissible by the Financial Conduct Authority from 1 April 2014. All the figures include the deduction of the actual charges assumed on the plan. These charges may vary in future.

Each year we will send you a statement showing your plan’s current value.

Invest from just £15 a month

Apply Online>

Our Parent’s Flexible Plan — at a glance

Features of the Parent's Flexible Plan

 At a glance

With a Parent’s Flexible Plan, you’re in charge

More information on the plan

 The detail