Children's Bond

Apply online

It is important you understand all of the key features of the Children's Bond if you are considering applying.

Product documents

You may be interested in
Includes member benefits

Children's Bond

Saving for your childs future

 

Help to give your child or grandchild a head start in life by saving a little every month to create a guaranteed cash lump sum.

Perfect for saving for expenses such as university fees or a first home, anyone can make regular payments into Bond.

Benefits Important Information

Children's Bond Benefits

  • Flexibility to choose how much you want to save - £12.50 or £25 a month.
  • Fixed regular payments helping you get into the savings habit.
  • Easy monthly payments by Direct Debit.
  • Available for children under the age of 16.
  • A guaranteed cash lump-sum at the end of the term for your child.
  • Fixed savings term to help you resist dipping into the savings.
  • Potential for bonuses to be added, depending on investment performance.

Product Summary

Tax Status

Your child's cash lump sum at the end of the term is completely tax-free as any tax is paid within the Life Fund.
Withdrawals

You can get hold of the money if you need to at any point. But as the Children's Bond is designed for those looking to save for the medium to long term, it should be as a last resort as you may get back less than has been invested.
Eligibility

Any child under the age of 16, who is the child or grandchild of a Serving or Retired Police employee, is eligibleWe welcome anyone in the Police Family as members. This includes not only serving and retired Police Officers and Staff, but also your own families. Your partner, parents, brothers and sisters, children and grandchildren can all benefit from our products and services.   for a Children's Bond.

This could suit you if you want:

  • To pay regular fixed payments for ten years or to the plan anniversary after the child's 16th birthday, if later
  • to have a tax-efficient savings plan for children aged up to 16 next birthday

Other things you should know

Close all Open all
What will my child get back?

It is very difficult to predict exactly what your child will get back as the payout will depend on the performance of our Life Fund, which is where your money is invested.

However every plan will have a guaranteed minimum payout. So no matter what happens in the financial markets, you'll know the very minimum your child will get back.

We aim to add a regular bonus each year into your plan and a final bonus when it matures at the end of the term. These could increase your child's guaranteed minimum cash payout.

But as we can't predict how the financial markets will perform in the future, the value of these bonuses will depend of how our Life Fund performs.

Once their child reaches 16 they become the owner of the plan and any communication will be made directly with the child. In addition, any payout will also be made directly to the child once they have turned 16.

How much can I save?

You can choose to save either £12.50 or £25.00 each month in the Children's Bond.

Can I pay from my salary or pension?

Due to tax reasons you can only pay by Direct Debit, which is simple to set up and makes it easy to save because the money automatically comes out of your account on the same day every month.

Can anyone pay into my child’s bond?

The parent or grandparent should be named as the payer although this can be changed during the term if required.

You can even set up two separate Bonds with a £12.50 a month payment. The only restriction is that there can only be one payer into each account at a time and the total must not be more than £25 a month.

It's important to remember that the owner of the plan, for example a parent, will have full control over the Children's Bond and can cash it in before the child reaches age 16 if they wish. If the payer is someone other than the person who opens the plan, for example a grandparent, they need to understand that this is still the case and all communication will be with the parent.

Who can open a Children’s Bond?

Any parent, grandparent or legal guardian can open a Children's Bond of behalf of the child.

The only restriction is that the child is under the age of 16 and is a child or grandchild of a serving or retired Police employee.

How long will it take to apply?

The application process is simple and takes no more than a couple of minutes when you apply online. You'll need your Direct Debit details ready to hand when you apply.

Additional checks

To comply with money laundering regulations, we sometimes have to carry out an online identity check with a reference agency when you apply.

The agency will add a note to your credit record to show that an identity check has been made. We won't share this information with anyone else and it won't affect your credit rating.

How will I know how my child’s bond is performing?

We'll send you a statement each year which will show the performance of your Child's Bond so you'll be able to keep track of their savings.

You can also contact us when you'd like an update in between your statements.

Can I get hold of my child’s savings if I need to?

You can get hold of the money if you need to at any point. But as the Children's Bond is designed for those looking to save for the medium to long term, it should be as a last resort.

Once the child reaches 16, they become the owner of the plan and any communication will be directly with the child. In addition, any payout will also be made directly to the child once they have turned 16.

If you do cash in you may get back less than has been invested.