The Scottish Friendly Child Bond Posted by FriendlySocietySavings on March 29th, 2008

The Scottish Friendly Child Bond is a friendly society tax exempt savings plan which means that you can save a maximum of £25 per month or £270 per annum free from Income and Capital Gains Tax. This is in addition to any savings that you may have in an ISA (Individual Savings Account). If you choose not to use your friendly society allowance then you will lose your tax free amount for that year. As Scottish Friendly is a friendly society children can have these plans as well making them useful for savings for children. Anybody can use a Child Bond to save for a child’s future not just parents, whether you are an auntie or a grandparent.

Scottish Friendly Society

Scottish Friendly is a friendly society which is a type of mutual organisation that exists to help its members. They look after over £800 million of their members money and have been in existence since 1862.

What tax will I pay on my savings?

Your savings will be free of both Income and Capital Gains Tax and when your plan matures you will have no further tax to pay.

How much can I save?

You can save a maximum of either £25 per month or £270 per annum tax free for a minimum of ten years.

How much of my savings is guaranteed?

When you start saving you will get an amount that you are guaranteed to get back at the end if you make all of your payments. The amount of the guaranteed cash sum is dependent on your age when you take out your plan. At the end of your savings term you will receive back your guaranteed amount plus your bonuses tax free.

What can I use the Child Bond to save for?

You can use your Child Bond to save for anything, although lots of people use the Child Bond to save for university costs, deposit for a first home, first car a nice nest egg to give the child a helping hand later on in life.

How much could I get back?

It’s difficult to predict how much you could get back from saving with a Child Bond but we can look at how much someone saving £25 per month for the last ten years would get back today if their plan was maturing. Although past performance is not a guide to future performance.

Building society: £3301 - 1.9%(1) pa, Scottish Friendly: £3920 - 5.2%(2)

If a child aged 5 ten years ago had taken out a Child Bond 10 years ago their savings would have grown to £3,920 compared to £3,301 if they had saved the money with a Building Society.

How Can I Apply?

Applying is quick and east just click here and you can apply online. If you start saving today Scottish Friendly will send you a £10 book token to say thank you.

book token

www.scottishfriendly.co.uk/apply

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