What does the Scottish Bond offer?

The Scottish Bond is a great way to make the most of your tax-free allowance. The Government lets you invest up to £25 a month tax free with a friendly society. You can use this tax-free savings allowance even if you already have an ISA. If you don't use it, you simply lose it.

The Scottish Bond is a 10-year investment for anyone aged between 16 and 64. Just set aside an affordable amount each month so that you could have a sizeable lump sum to look forward to. Just imagine, it could help pay for a car or the holiday of a lifetime. However, if you cash in early you may not get back as much as you have paid in.

When you invest with the Scottish Bond, you're saving tax-free in two ways.

• First, unlike most investments and savings accounts, your money grows free from tax (other than tax on dividends from UK shares).
• Second, you don't pay tax on the payout when your Bond matures.

Your money will be invested in the Scottish Friendly With Profits Fund. This is an expertly managed fund which invests in stocks and shares, fixed interest funds and cash for long term growth as well as a degree of security.

How much can I save?

You can choose to save £15, £20 or £25 a month or £180, £225 or £270 a year.

How could the Bond grow?

The Scottish Bond offers a convenient way of building your savings and your payout is made up of two parts:

• Firstly, the bond's aim is to provide competitive long-term growth plus a degree of security in the form of a guaranteed minimum cash sum at the end of 10 years. This means if you maintain your payments you will be guaranteed to receive at least part of what you have invested over the 10 years. Your actual guaranteed minimum cash sum will depend on your age and how much you pay in each month. If you cash in before the end of the term, you may not get back as much as you have paid in.
• Secondly, the long-term growth potential on your plan comes in the form of potential annual bonuses which may be added to your plan. The bonuses are based on the overall profitability of Scottish Friendly's investments and how it distributes them to customers like you, so the value of these bonuses cannot be guaranteed in the future. However once an annual bonus is added to your plan it is locked in and cannot be taken away. Any final bonus will be paid at the end of your term.

Consistently strong past performance

Compare our returns for yourself:

Return on £25 per month invested over 10 years

Please remember past performance is not a guide to future performance. Your payments in the Scottish Bond are invested in Scottish Friendly's with profits fund where investment returns may fluctuate and are not guaranteed unlike a bank or building society account. In addition, bank or building society accounts have more certain growth prospects and easier access to your money. With the Scottish Bond, you do not have instant access to your money and if you cash in your plan before the end of 10 years you may not get back as much as you have paid in, particularly in the early years. Don't forget that inflation will reduce the buying power of the values shown here in ten years.

All bonuses, both regular and final cannot be guaranteed, and depend on the performance of the Scottish Friendly With Profits Fund and how Scottish Friendly decides to distribute any profits. The value of any final bonus is determined by the overall profitability of an investment over the entire term of the plan.

1. Source: Morningstar UK Savings £2,500+ Investment Gross. This is a Morningstar index which measures the performance of the savings accounts of a number of current and ex-building societies over 10 years to 1/8/08.
2. Source: Scottish Friendly. Based on someone starting a plan aged 30 next birthday saving £25 per month. Figures shown are based on a Scottish Friendly 10 year with profits plan maturing on 1/8/08. Based on current tax law which may change. On maturity the investor receives the proceeds free of tax.

Life cover is included

The Scottish Bond automatically includes life cover. The amount of life cover depends on your age and may be subject to medical conditions. For example, someone taking out a Scottish Bond aged 30 will have a greater level of life cover than someone aged 60. And of course, the benefit of life cover means that if you die during the 10 year savings term, your dependants would receive a tax-free cash sum, made up of the guaranteed cash sum plus any bonuses which have been added, to help them through a difficult time. You should consider if life cover is appropriate for your financial needs. Please read the key features for full details.

The table below gives an indication of how much life cover you could expect.

Age next birthday	Monthly saving for 10 year plan
	£15	£20	£25
25	£1527	£2072	£2617
30	£1525	£2070	£2614
35	£1520	£2063	£2606
40	£1512	£2052	£2592
45	£1501	£2036	£2572
50	£1478	£2006	£2534
55	£1442	£1957	£2472
60	£1381	£1874	£2367
65	£1269	£1723	£2176

Apply now

Applying is easy. Simply click on the Apply Online Now link, read the Key Features then complete and submit your application today. Or if you'd prefer to apply by post click on the download application link, to download an application form, read the Key Features then complete it and post it to:

Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR

When you start saving with us, you'll receive a gift. Choose either a £15 Marks & Spencer voucher or a £15 High Street voucher. Don't forget to select which gift you would like on your application form.

Or, you can request an information pack to be sent to you in the post. This pack includes further Scottish Bond information and an application form.

If you are in any doubt as to whether this product is suitable for you please contact your Financial Adviser.

If you apply for this product, for your records, we recommend you print or save a copy of this and any other relevant pages together with a copy of the Key Features.