Junior Bond - Details - from Family Investments

Saving regularly over the long term, for example until a child’s 18th, 21st or 25th birthday, means they could receive a really useful lump sum when they need it. Perfect for helping towards things like their first car, setting up home or towards further education.

Save between £15 and £25 a month.
Choose a term between 10 and 25 years.
Aims to provide better growth than a bank or building society account, although you should note that money paid in to a bank or building society account is protected and has greater accessibility.
See below for the aims, commitments and risks of the Junior Bond.

Family Investments does not provide advice. If you have any doubts about the suitability of any of our products you should seek independent financial advice.

Download ‘All you need to know about our Junior Bond’

Its aims

To enable you to invest tax-efficiently for a child.
To provide a child with a tax-free lump sum at the end of the chosen payment term.
To achieve growth by investing in stocks and shares.

Your commitment

To make a fixed, regular annual or monthly payment, which you select at the start.
You cannot increase or reduce this amount at any time.
To pay the chosen amount for at least 10 years.

The risks

Because the money is invested mostly in stocks and shares, its value can go down as well as up. The child may get back less than you have paid in.
Your circumstances may change, and this may mean that the Bond needs to be cashed in early. This will increase the possibility that the child will get back less than you have paid in.

If the Bond is cashed in early, or you do not keep making payments for at least 10 years, any growth may be taxable.
Tax advantages of the Junior Bond depend on your, and the child's, individual circumstances and its tax treatment may change in the future. If the tax treatment changes, the potential growth of the Bond may be reduced.

What might the child get back?

These figures are based on a Junior Bond taken out for a child aged 0 where you have selected an initial payment term of 10 years and want to pay £15 per month.

These figures are not a reliable indicator of what the Junior Bond will be worth in the future. The child could get back more or less than this.

If the fund grew over 10 years by...

Important: The figures above are only examples and are not guaranteed. They are not a reliable indicator of future performance. What the child gets back will depend on how the investment grows. They could get back more or less than this. Most friendly societies use the same rates of growth but their charges may vary. Over time, the cost of living will generally rise which means the child will not be able to buy as much in the future with the amounts shown.

What are the charges?

An initial charge of £60 will be taken from the first year's payments.
We also apply an annual management charge of 1.5% of the fund value.
There is also a charge for life cover, which we deduct each year on the Bond's anniversary, if the value of the Junior Bond is less than the amount of the life cover.
Further information on the charges can be found in the All you need to know about our Junior Bond document.

A little thank you...

… for starting a Junior Bond (the big thanks will come in the future).

Depending on how much you decide to invest each month, you can get up to £25 to spend at Boots. Remember that once set-up, your contributions are fixed for the term of the investment.

Set up a regular Direct Debit for	Your Gift
£15 to £24 a month	£15 Boots voucher
£25 a month	£25 Boots voucher

Your Boots voucher will be sent to you shortly after we receive your first Direct Debit payment.

The Junior Bond

Tax-exempt long-term savings for a child

Its aims

Your commitment