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Tax Free investments with the Scottish Bond

A tax-free investment in addition to your ISA allowance

The Scottish Bond is a with-profits plan that allows you to invest up to £25 per month tax-free with a friendly society like Scottish Friendly over a period of 10 years. The table below provides all the plan detail and things you should consider. For more information on Scottish Bond please visit the in detail tab.

Invest £15 to £25 a month tax-free over your ISA allowance.
i Your Scottish Bond i Things you should consider
  • Start a regular savings habit using your tax-free savings allowance. Invest £15 to £25 per month for 10 years.
  • All investments will pay out free of any taxes after 10 years.
  • You get a guaranteed minimum cash sum after 10 years.
  • Your guaranteed minimum cash sum can grow through the addition of regular bonuses.
  • Your guaranteed minimum cash sum may be increased by a final bonus which is related to the investment performance of the Scottish Friendly With-Profits Fund.
  • No profits are paid to city shareholders meaning they can be reinvested for the benefit of Scottish Friendly customers.
  • A small amount of life cover is automatically included.
  • To apply, you need to be a UK resident aged between 16 and 55.
  • 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). Tax treatment depends on your individual circumstances and tax law may change in future.
  • If you cash in your plan 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.
  • The amount of your guaranteed minimum cash sum depends on your age and how much you pay in. It will initially be less than your total investment over 10 years.
  • Future bonus levels depend on investment returns and expenses and how Scottish Friendly decides to distribute profits to customers. As such, they cannot be guaranteed.
  • The cost of life cover is included as a small part of the plan’s charges. The cost of life cover is higher for older ages.

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.

A tax-free investment in addition to your ISA allowance

Scottish Bond is a 10 year with-profits plan for UK residents, aged between 16 and 55. If you’re in that group, under current law you’re allowed to invest up to £25 per month tax-free with a friendly society such as Scottish Friendly. This is a limit set by the Government and it is over and above tax allowances such as ISAs.

Invest £15 to £25 a month tax-free over your ISA allowance.

 

With Scottish Bond 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 regulation is subject to future change.

Start a regular investment habit

You can put away £15, £20 or £25 per month or £180, £225 or £270 per year in your Scottish Bond.

Putting money aside could quickly become a habit. When you set up paying into your Scottish Bond by Direct Debit you may hardly notice the payment.

Please remember, if you stop your Scottish Bond within the first 2 years, you get nothing back. After the first 2 years, the payout may be lower than what you’ve paid in.

Long term growth potential

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 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 insurance. 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.

How your investment could build

Projected returns on £25 per month invested over 10 years*

£3,140 projected value at 4.75% per year, £3,290 projected value at 5.75% per year, £3,430 projected value at 6.75% per year.

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 investing £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).

Get your Scottish Bond

Starting a Scottish Bond with Scottish Friendly is easy.

Make sure you have read and understood the Key Features and ‘How we invest your money’ guide before you apply. Then you’re ready to:

  • Apply online;
  • Download an application form and post it to:
    Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR.

If you apply, we suggest printing or saving a copy of this page, other relevant pages, the Key Features and 'How We Invest Your Money' guide.

Taking out an investment plan with us is straightforward

Thank you for choosing to apply. All you have to do is follow three simple steps:

  1. Before you apply, please ensure that you have read and understood the information provided on the Scottish Bond.
  2. Then download and carefully read the Key Features and 'How we invest your money' guide.
  3. Finally complete the online application, specifying the date on which you wish payments to start and we'll begin processing your plan immediately.

Apply now

Before you continue, you should ensure you have read and understood the Key Features document. This is our standard client agreement upon which we intend to rely. For your own benefit and protection you should read these terms carefully. If you do not understand any point please ask for further information.

Call us on 0333 323 5433 if you have any further questions about this plan or how to apply for a Scottish Bond.

Lines are open 8.30am-5.30pm, Monday to Friday.

Scottish Friendly may record and monitor calls.

Taking out an investment plan with us is straightforward

Thank you for choosing to apply. All you have to do is follow five simple steps:

  1. Before you apply, please ensure that you have read and understood the information provided on the Scottish Bond.
  2. Then download and carefully read the Key Features and 'How we invest your money' guide.
  3. Download the Scottish Bond application form.
  4. Print your completed application form, then sign and date it correctly.
  5. Finally, post your completed application form to:
    Scottish Friendly Assurance, Freepost, Glasgow, G2 4BR.

Download Application Form

Before you continue, you should ensure you have read and understood the Key Features document. This is our standard client agreement upon which we intend to rely. For your own benefit and protection you should read these terms carefully. If you do not understand any point please ask for further information.

Call us on 0333 323 5433 if you have any further questions about this plan or how to apply for a Scottish Bond.

Lines are open 8.30am-5.30pm, Monday to Friday.

Scottish Friendly may record and monitor calls.

The Scottish Friendly Marketing Group is authorised and regulated by the Financial Services Authority, the financial regulator for the United Kingdom, and consists of the following companies: Scottish Friendly Assurance Society Limited: Life, Pensions, Savings and Investments. Member of ABI and AFM; Scottish Friendly Insurance Services Limited: Provider of Wrap Administration Services. Registered in Scotland No. 113007; Scottish Friendly Asset Managers Limited: OEIC Managers, ISA Managers. Registered in Scotland No. 187215; SFIS (Nominees) Limited. Registered in Scotland No 397351; Scottish Friendly Trustee Company Limited. Registered in Scotland No 312652. Head office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.