About investing in this bond
- The Child Bond is a tax exempt savings plan which invests your money for a fixed period of either 10 years or until the child's 18th or 21st birthday.
- As with all investments, it's important to be aware that the value can go down as well as up, so your child could get back less than you've paid in. If you cash in within the first two years your child will get nothing back.
- A small amount of life cover for the child is automatically included.
- The bond is the property of the child at all times.
About tax exempt savings plans
- Tax treatment depends on individual circumstances. Tax law may change in the future.
- Tax-free means the plan grows free of income or capital gains tax (other than tax that's already paid i.e. on dividends from UK shares).
- 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.
- You can only invest a total of £3,600 each year in a qualifying endowment life policy, including up to £25 a month in a tax exempt savings plan.