PMAS Children's Bond
Product Information
The PMAS Children's Bond brings all our
experience and expertise in investments to your children. It is a
tax-exempt* scheme for children and
grandchildren of serving and retired Police Officers and Staff.
Anyone can pay into the bond, and because we
have no shareholders, your child benefits from anything the
investment might earn. Your child will receive a cash lump sum at
the end of the term.
How the Children's Bond works
A Children's Bond can be started at any time
before your child's sixteenth birthday. Payments are made for a
minimum of ten years, or until the plan anniversary after the
child's sixteenth birthday, whichever is the longer period.
In addition to the guaranteed minimum payout
the plan may earn regular bonuses. Once added, these become
guaranteed and cannot be reduced or taken away as long as the plan
runs for its full term. All bonuses depend on the performance of
the fund.
At the end of the payment term your child will
receive a payout or can leave their investment with the Society,
where it will grow in line with average monthly bank rates.
Paying in to the bond
You can make monthly payments of £25.00 or
£12.50 for the full payment term. If you start with £12.50 a month
now, you can top that up with another plan for £12.50 at a later
date. You can only pay by Direct Debit – unfortunately we are
not able to deduct from salary.
Anyone can make the payments on the child's
behalf. However, the parent named on the application form has
control over the plan until the child reaches sixteen, regardless
of who is paying.
A Children's Bond is the property of the child
at all times. Once the child reaches sixteen they will have control
of the plan and all correspondence will be addressed to them.
Guaranteed minimum payout illustration
| |
|
Initial sum assured |
| Age next birthday |
Payment term |
£25.00 monthly |
£12.50 monthly |
| 1 |
16 years |
£3,480 |
£1,680 |
| 2 |
15 years |
£3,265 |
£1,575 |
| 3 |
14 years |
£3,045 |
£1,470 |
| 4 |
13 years |
£2,830 |
£1,365 |
| 5 |
12 years |
£2,610 |
£1,260 |
| 6 |
11 years |
£2,395 |
£1,155 |
| 7 to 16 |
10 years |
£2,175 |
£1,050 |
Life Cover
The Children's Bond includes built-in life cover. Should the
child die before the plan ends we will pay the guaranteed minimum
payout, plus all bonuses added to date.
For children born since 1 September 2002
Police Mutual also offers a Child Trust Fund -
a long term savings account for the £250 (or more) given free from
the Government.
The Government will send a voucher directly to
the child's parents or guardians, which must be invested with a
registered Child Trust Fund provider.
Anyone can then pay into the child’s fund – up
to £1,200 in total each year – until the child is 18, when he or
she gets access to the money.
For more information, see the Child Trust Fund section of this
site.
* Tax legislation may change.