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

The Scottish Friendly Scottish 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.

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 mimimum 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. For example someone who is 30 next birthday and saving £25 per month for ten years will have a guaranteed amount of £2,614. If you are older the amount you will have guaranteed will be slightly less and if you are younger the amount will be slightly higher. If you were to die during the term of your plan your dependants will receive the amount to help them with the difficult times. At the end of your savings term you will receive back your guaranteed amount plus your bonuses tax free.

What can I use the Scottish Bond to save for?

You can use your Scottish Bond to save for anything, you may want to take a once in a lifetime holiday or use it to pay for a new car. Whatever you decide to use it for you can start thinking now!

How much could I get back?

It’s difficult to predict how much you could get back from saving with a Scottish 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: £3927 - 5.3%(2)

If a person aged 29 ten years ago had taken out a Scottish Bond 10 years ago their savings would have grown to £3,927 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 £15 M&S gift voucher or a £15 high street voucher to say thank you.

Your Gift

www.scottishfriendly.co.uk/apply

 

 

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