Start a regular investment habit

Invest £25 a month and start a Scottish Bond with Scottish Friendly.

Payments are made by Direct Debit, so once set up you may hardly notice them leaving your account.

In addition to your ISA allowance

If you've already used up your ISA allowance for the current tax year don't worry! The Scottish Bond lets you make use of a special tax allowance available to friendly societies - like Scottish Friendly.

Read more about tax and tax exempt savings plans in the important things to think about tab.

Relax, life cover comes as standard

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.

Long term growth potential

Unlike a traditional savings account, you don't earn interest on the money you pay in.

Instead, a Scottish Bond puts your money to work in our With-Profits fund which invests in a range of assets which includes shares, bonds, property and cash.

The Key Information Document (KID) gives you an overview of the fund and should be read alongside the Product Guide.

The 'What could I get back?' section below provides an additional example of what you could get back in the future based on a payment amount which is lower than that shown in the KID.

A guaranteed minimum cash sum

What’s special about the Scottish Bond is the guaranteed minimum cash sum you'll receive after 10 years. This gives you the reassurance of knowing that part of your total investment is protected.

The guaranteed minimum cash sum will depend on your age and how much you pay each month. At first it 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 in the Scottish Bond comes from the addition of regular bonuses and a potential final bonus. The value of these bonuses is based on the profit we make, our investment returns and the way in which we distribute these to our customers and bonuses are not guaranteed.

How your investment could grow

Because your investment is linked to a range of assets it’s impossible to tell you the exact return you may get in the future - but we can give you a rough idea.

The chart below provides examples of what you could get back in the future based on a payment amount which is lower than that shown in the Key Information Document.

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 back less than the amounts shown.

You can see in the illustration above that the lower projected growth rate of 1.5% 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 Product Guide).

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.

Member benefits

Once you have applied, if you sign up to the My Plans online service and opt to go paperless, we’ll send you a My Benefits card.

My Benefits gives you access to fantastic savings and offers from thousands of leading brands and local outlets. This includes offers on eating out, leisure, travel and holidays, household goods, gym membership, DIY and electricals from a range of retailers.

Being part of a mutual

Scottish Friendly is a mutual - this means we don’t have shareholders, which also means any profits are used to benefit our members.