Forces Financial and Scottish Friendly team up to launch new tax-free products

Forces Financial has selected Scottish Friendly - one of the UK's leading financial services providers - to provide three new tax-free savings products for the UK Police and Armed Forces.

From the end of October, Scottish Friendly's Child Bond, Scottish Bond and Child Trust Fund will be available to all British personnel through the Forces Financial network of 20 branches and 90 introducers in the UK , Germany and Cyprus.

The bonds offer a tried and tested way of building savings whilst maximising the special tax-free* savings allowance only available from friendly societies. Between £10 and £25 a month per child can be invested in a Scottish Friendly Child Bond for a minimum term of 10 years or to mature at an 18 th or 21 st birthday. For adults, investment in the Scottish Bond can be from £15 to £25 a month over a ten year term. Not only are the savings tax-free but so is the investment growth and the final payout. What's more, Scottish Friendly's mutual status means that all the profits are distributed among policyholders in the form of bonuses. With profits bonuses cannot be guaranteed in advance and if the plan is cashed in before the end of the term, the child or investor may not get back as much as that paid in.

The Child Trust Fund is a ‘stakeholder' (Government-approved) account that invests in Scottish Friendly's Managed Growth Fund which has performed consistently well in the past. The value of stocks and shares can go down as well as up and the amount invested is not guaranteed at the end of the term.   Past performance is not a guide to future performance.

Al Voice, Forces Financial MD said: ‘These tax-efficient savings products come with an excellent pedigree, from a dynamic and modern financial services group that has continuously generated highly competitive returns for its members . I believe in encouraging the discipline of saving from an early age, and the level of investment required for these products makes them easily accessible to our customers, and should be viewed as part of balanced strategy that incorporates short, medium and long term saving products.'

Neil Lovatt, Sales & Marketing Director at Scottish Friendly said: ‘This is an ideal partnership for Scottish Friendly. As a friendly society we are keen to encourage all forms of saving and investment for people from all walks of life. By teaming up with Forces Financial we can bring the benefits of affordable, mutual and tax-free investing to a large number of investors. We estimate that our partnership with Forces Financial could account for 20% of new business in these products in 2008. '

Starting the saving habit at an early age will not only give youngsters a financial head start in life but, on opening a Child Bond, they will also be sent a £10 book token as a thank-you for investing, once the first monthly premium has been received.

For more information and an information pack call 0800 585 625 quoting LGH or g o to www.scottishfriendly.co.uk/forcesfinancial

*Tax-free means free of Income and Capital Gains Tax. On maturity, proceeds are free of tax. The fund in which you invest receives UK dividend income net of Corporation Tax.



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