Family Bond

The Family Bond is a tax-exempt long-term regular savings plan, and is a simple and affordable way for you to take advantage of the special tax privileges* available to Friendly Societies.

If you've read the details and are happy our Family Bond is right for you...

Apply online

Simple, affordable investment

You can start a Family Bond from just £15 a month and save up to £25 a month, or you can choose to save on an annual basis from £165 a year up to £270 a year.

To qualify for the tax advantages of this product, the minimum investment period is 10 years.

You choose the contribution amount and frequency when you open the plan, and these remain fixed throughout the term.

As it's linked to the stockmarket, the Family Bond offers the potential of good returns but, of course, its value can fall as well as rise and you could get back less than was paid in. It is a long-term plan, with long-term objectives, so if you cash it in early it increases the chance that you could get back less than you paid in. The product also includes an element of life cover, the cost of which is charged to the Bond.

Before applying online for a Family Bond, you should ensure you have read the relevant sections of this site, including the Important Information and the All you need to know about the Family Bond document, and are happy that the account you have chosen is right for you.

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

* Tax advantages depend on individual circumstances and the tax treatment of the Family Bond may change in the future.

Its aims

  • To enable you to invest tax-efficiently over the long term.
  • To provide you with a tax-free lump sum at the end of the payment term you select.
  • To achieve growth by investing in stocks and shares.
  • To offer a choice of two funds including an ethical fund.

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. You may get back less than you have paid in.
  • If the value of your Bond falls unexpectedly, shortly before you want or need to withdraw your money, it could mean that you do not have enough money to meet your needs.
  • Your circumstances may change, and this may mean that your Bond needs to be cashed in early. This will increase the possibility that you will get back less than you have paid in. If you need to cash in your Bond in its first year, you will not get anything back.
  • If you cash in your Bond in the first 10 years, or you do not keep making payments for at least 10 years, you may have to pay tax on any growth.
  • If you do not keep making payments, we will stop providing life cover.
  • Tax advantages of the Family Bond depend on your 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.

Our Family Bond

Invested in the Sovereign Fund.

The Sovereign Fund aims to achieve long-term growth, whilst spreading the risk across a wide range of investments.

It invests mainly in both UK and overseas shares, along with fixed interest investments and property. It may also invest in alternative investments, money market instruments and cash. The fund may achieve this by investing in one or more other funds.  

  • Risk spread across a wide range of investments.
  • Investments in both UK and overseas shares.
  • May invest in alternative investments, for example an Absolute Return Fund, which is a fund that aims to provide a positive return regardless of what is happening on the stock market.
  • May invest in property directly.

For more details about this fund, you can view its fact sheet.

For more information on Sovereign's investment in absolute return funds, click here.

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Our ethical Family Bond

Invested in the Family Charities Ethical Exempt Fund.

The Family Charities Ethical Exempt Fund invests in a unit trust, which aims to achieve long-term growth by closely following the performance of companies included in the FTSE4Good UK 50 Total Return Index.

To be included in this Index companies need to demonstrate that they are working towards:

  • Environmental management.
  • Climate change mitigation and adaptation.
  • Countering bribery and upholding human and labour rights.
  • Globally recognised supply chain labour standards.

The Index also avoids investment in companies involved in tobacco production, as well as companies manufacturing nuclear weapons and whole weapon systems. Further information is available by contacting us or visiting the FTSE4Good website.

For more details about this fund, you can view its fact sheet.


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