Open a Child Savings Account for a Lump Sum Payout

Children grow so quickly which means it is essential to start thinking about saving when they're young. By saving from just £10 to £25 a month with Scottish Friendly's Child Bond when they are young you could make all the difference when they are older. For instance helping to pay for university fees or making a payment to secure a first vehicle.

You can invest in a tax-free savings plan for any child with a Scottish Friendly Child Bond. It's tax-free because it's a friendly society savings plan, so under current fiscal law it grows free of income or capital gains tax. Without doubt it is a wonderful way for parents, grandparents, family members and friends to make a substantial financial difference when the little ones are older.

Put concisely the Child Bond is a with-profits investment plan: It invests for long-term growth as well as an element of security, in stocks and shares, fixed interest funds and cash.

Money grows through the addition of potential annual bonuses and when the bond becomes payable there is a tax-free payout. The value of bonuses is conditional on how much profit we make and how we decide to distribute it. It must be realised that bonuses are not guaranteed.

The Child Bond can run for a minimum of 10 years, but you are able to invest for longer if you wish - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.We leave this totally up to you. Do not forget that if the plan is cashed in prior to the end of the term, the amount the child will be paid may be less than the amount paid in.

If you would like to choose the monthly option, you can get started by saving from as little as £10 a month - up to a maximum of £25 monthly. Or you can make once a year payments of up to £270 a year.

You can also remit all of the premiums in one go through our lump sum funding plan. If you invest the maximum possible amount of £2,340 for ten years, this actually invests £270 a year into the Child Bond - a total of two thousand seven hundred pounds. The minimum lump sum of £1,040 will provide £120 a year for 10 years - a total of £1,200. This provides a means for you to take care of all your premiums in one fell swoop and is especially popular with grandparents who like the reassurance of knowing all premiums for the full length of the term of the plan are taken care of.

This plan includes life cover, so you should consider if this is fitting for your financial needs.