Children reach adulthood fast which means it is essential to be mindful of saving when they’re still at school. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond while they are children you could save them from the stress of money worries when they are older. Scenarios where this may prove invaluable may include helping to pay for university fees or providing the means to acquire a flat.

You can save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free because it’s a friendly society savings plan, so under present-day legislation it grows free of income or capital gains tax. There can be no doubting that a superb way for parents, grandparents, family members and friends to make a huge financial difference when the childen are older.

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

The saved total accumulates by means of the addition of potential yearly bonuses and when the bond maturesthere is a tax-free payout. The value of bonuses is conditional on how much profit we make and how we decide to distribute it. Please note that bonuses are not guaranteed.

The Child Bond may last for a minimum of ten yrs, but you are free to invest for longer should you choose to – perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It really is completely up to you. Please note if the plan is cashed in prior to the end of the term, the amount the child will get back may be less than the amount paid in.

If you go for the monthly option, you can make a start by saving from as little as £10 a month – up to a maximum of £25 monthly. Or you can make annual payments of up to £270 a year.

You can also make all of the premiums in one go through our lump sum funding plan. If you invest the maximum figure of £2,340 for a decade, this actually invests £270 a year into the Child Bond – a total of £2. The minimum lump sum of £1,040 provides £120 a year for 10 years – a total of £1,200. This provides a route for you to make payment of all your premiums at once and is particularly 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.

As an added bonus so you should consider if this is apposite for your financial needs. See also our Child Trust Fund account