Family Bond
A fixed-term, tax-exempt savings plan

Our Family Bond is a Tax-Exempt Savings Plan, which is a type of savings plan that only friendly societies like us are able to offer. "Tax-exempt" means you won't pay tax on any money you make by investing in the plan, as long as you keep your money invested for at least 10 years and keep up your regular payments.

Our Family Bond invests in stocks and shares which means you could see more growth than cash over the long term. When you invest, your capital is at risk as the value of investments can go up and down.

Anyone aged 16 - 74 years old (inclusive) can open a Family Bond.

You don't need to have children to take out a Family Bond.

The money you pay into a Family Bond doesn't affect your annual ISA allowance. It's a tax-free savings plan available in addition to your ISA.

You can invest £25 a month or £270 a year in a Family Bond in addition to your £20,000 ISA allowance, without having to pay tax on what you get back. This is a government-set limit.

You can find more information in our FAQs.

That's up to you! You can choose anywhere between 10 and 25 years when you open the Family Bond (it must be in complete years).

At the end of your chosen payment term, your bond will mature and you'll be able to take the money out without paying any tax no matter how much it's grown by.

You can take your money out at any time but please be aware that if you do so before the end of your payment term, you may have to pay tax and a withdrawal fee which could mean that you get back less than you put in.

If don't cash in your Family Bond by your 85th birthday, it will automatically mature.

To find out more about our Family Bond, please read our Important Information Booklet.

You can choose to invest £25 a month or £270 a year. You can pay in with a regular direct debit.

This limit is set by the government for this type of savings plan, which has favourable tax treatments.

You can, but there's a few things to keep in mind.

1. The Family Bond will have no value during its first year so you won't get any money back if you try to cash it in within 12 months of opening.
2. From year two onwards, until the 10th anniversary, you will get back the Family Bond’s policy value minus a £50 charge.
3. This type of investment has to be invested for a minimum of 10 years to be tax-efficient. If you cash in your Family Bond before its 10th anniversary, you may have to pay tax on any growth.

Our Family Bond comes with some life cover, which is payable after you've invested for a year and until the end of the fixed payment term.

The life cover pays out 75%* of the total payments due during the initial fixed payment term or the value of the bond – whichever is higher at the time of your death. Therefore the value of the life cover depends on how long you choose to invest for.

You must have paid in regularly – either monthly or yearly, depending on the option you choose when you open the bond – for the life cover to be payable.

*If you are aged 56 or over when your Bond is opened, the amount of life cover you receive will be reduced by 2% a year. For example, if you are 56, you will receive 73% of the payments you are due to make over the initial payment term, if you are 57, you will receive 71% and so on.