Youngsters grow up fast which means it is critical to consider saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s Child Bond at this time you could help them when they are older. For example helping to pay for university fees or to 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 as it’s a friendly society savings plan, which means that under today’s law it grows free of income or capital gains tax. It’s an ideal way for parents, grandparents, family members and friends to make a huge financial difference when the kids 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

Funds accumulate through the addition of potential yearly bonuses and when the bond reaches maturity there’s a tax-free payout. The value of bonuses is dependent on how much profit we make and how we distribute it. Please note that bonuses are not guaranteed.

The Child Bond runs for a minimum of a decade, but if you want you can invest for longer should you like - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It 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 choose the monthly option, you can start 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 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 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 go and is especially 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 suitable for your financial needs.