Children grow so quickly which means it is critical to start thinking about saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond without delay you could make all the difference when they are older. For instance helping to pay for university fees or find the money for a first home.

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, which means that under current legislation it grows free of income or capital gains tax. It’s an excellent way for parents, grandparents, family members and friends to make a huge financial difference when the little ones 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

Money accumulates through the addition of potential annual bonuses and when the bond matures there is a tax-free payout. The value of bonuses depends on how much profit we make and how it is distributed by us. Please note that bonuses are not guaranteed.

The Child Bond lasts for a minimum of ten years, but if you wish you can invest for longer if you want - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.That is for you to decide upon. It should be noted that if the plan is cashed in before the end of the term, the amount the child will receive may be less than the amount paid in.

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

You can also take care of all of the premiums in one go through our lump sum funding plan. If you invest the maximum amount of £2,340 for ten years, this actually invests £270 a year into the Child Bond - making £2700. The minimum lump sum of £1,040 provides £120 a year for 10 years - a total of £1,200. This provides a way for you to take care of all your premiums in one go and is particularly popular with grandparents who like the reassurance of knowing all premiums for the entire term of the plan are taken care of.

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