Tax-free investing from £15 a month
Invest from only £15 to £25 a month tax-free with a guaranteed minimum cash sum.
At Scottish Friendly, we know how satisfying it is to feel that you’re prepared for the future. That’s why our Scottish Bond puts you in control and lets you build towards a useful tax-free cash sum.
Whatever you’re planning, a Scottish Bond could help to prepare towards the future. By investing just a few pounds a month, you could build a cash sum to spend on whatever you like. So whether it’s towards a new home, a retirement fund or that dream holiday you’ve always wanted, you could have a tax-free payout to look forward to when you’re ready.
The table below provides all the plan detail and things you should consider. For more information on Scottish Bond please visit the detail tab.
|Your Scottish Bond||What you need to consider|
Did you know you are allowed to invest up to £25 per month tax-free with a friendly society such as Scottish Friendly in addition to your ISA allowance?
So if you are a UK resident aged between 16 and 55 you can invest up to £25 per month in a Scottish Bond and invest in your ISA at the same time.
Scottish Bond is a long-term investment in our With-Profits fund for a period of 10 years. You don’t pay tax on the growth of your money (other than tax on dividends from UK shares) and there’s no tax to pay when your Scottish Bond ends after 10 years. Please note that tax treatment depends on your individual circumstances and tax law may change in future.
You’ll be surprised how putting as little as £15, £20 or £25 aside every month could quickly become a habit and when you set up paying into your Scottish Bond by Direct Debit you may hardly notice the payment. You can also put away lump sums of £180, £225 or £270 per year in your Scottish Bond.
Please remember, if you stop your Scottish Bond within the first 23 months, you get nothing back. After the first 2 years, the payout may be lower than what you’ve paid in.
Your Scottish Bond money is invested in the Scottish Friendly With-Profits Fund. It’s carefully managed across a range of assets, aiming for long-term growth and a degree of security in the form of a guaranteed minimum cash sum after 10 years. Please go to 'How we invest your money' to see how we look after your investment.
What’s special about the Scottish Bond is the guaranteed minimum cash sum you receive after 10 years. You have the reassurance of knowing that you will get a guaranteed minimum cash sum, which protects part of the total amount invested.
The guaranteed minimum cash sum will depend on your age and how much you pay each month. At first, the guaranteed minimum cash sum will be less than the money you’ve paid in. But it’s designed to increase through the addition of bonuses.
Long-term growth potential comes from the addition of regular bonuses and a potential final bonus. Their value is based on the profit we make, our investment returns and the way in which we distribute these to our customers. The bonuses are not guaranteed.
As a condition of the tax benefits, you also get life cover. This ensures that on death your estate will receive at least your guaranteed minimum cash sum plus any locked in bonuses. The level of cover depends on your age, health and payments into your Scottish Bond. You should consider if this is appropriate for your financial needs.
If you apply, we suggest printing or saving a copy of this page, other relevant web pages, the Key Features and 'How We Invest Your Money' guide.
Projected returns for illustration only. Remember your original investment is not guaranteed and you could get back less than the amounts shown.
You can see in the illustration above that the lower projected growth rate of 2% a year provides a return which is less than the total paid in over a 10 year term. This is due to the effect of charges in the first two years and cost of life cover for the duration of the bond.
Based on someone aged 30 next birthday investing £25 per month. *Total amount invested £3,000. 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 10 years. They are not minimum or maximum amounts. Your guaranteed minimum cash sum depends on your premium and age when you apply. 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 bond, 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. All the figures include the deduction of the actual charges assumed on the bond. These charges may vary in future.
Each year we will send you a statement showing your bond’s current value.
Scottish Friendly is not responsible for the accuracy of the information displayed on externally linked third party websites. The Scottish Friendly Group of Companies consists of the following companies: Scottish Friendly Assurance Society Limited – Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Member of AFM, Member of ABI: Life, Savings and Investments. Scottish Friendly Asset Managers Limited – Authorised and regulated by the Financial Conduct Authority. Member of The Investment Association. Registered in Scotland No 187215: OEIC Managers, ISA Managers. Scottish Friendly Insurance Services Limited – Authorised and regulated by the Financial Conduct Authority. Registered in Scotland No 113007. SFIS (Nominees) Limited - Registered in Scotland No 397351. Head office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.