Tax benefits include:
- The proceeds on maturity are free from income tax and Capital Gains Tax
- On maturity, your child will receive a guaranteed minimum cash sum together with the potential for bonuses.
The Scottish Friendly Child Bond offers two saving options:
Save between £10 and £25 a month or £120 and £270 a year
- Invest the maximum lump sum of £2,340 for a 10 year period; this actually invests £270 a years into the bond – a total investment of £2,700.
- Invest the minimum lump sum of £1,040; this actually invests £120 a years into the bond – a total investment of £1,200.
The reason you do not have to pay the whole £2,700 in order to have £2,700 invested is because if you invest a lump sum, the cash is used to set up a funding plan which invests into a Scottish friendly growth and income bond. This bond guarantees the maximum premium into your tax-exempt Scottish Friendly Child Bond i.e. making gains on your £2,340 investment of £360 to make it up to £2,700.
The Scottish Friendly Child Bond offers:
- The security of a guaranteed minimum cash sum, which protects a part of the total amount invested
- The potential for Regular bonuses and a final bonus
You can apply online for a Scottish Friendly Child Bond.