What the Child Trust Fund Can Do for Your Child,where to Invest the Two Hundred and Fifty Poundschild Trust Fund Voucher,Invest Your Free Child Trust Fund Voucher with Scottish Friendly,Investing in a Child Trust Fund Builds a Sound Financial Foundation F
So what is this Child Trust Fund that all the talk is about?Are you one of the lucky people who are in the know about the Child Trust Fund? Are you clued up on the Child Trust Fund?Not many UK parents noticably
sparse number of parents seem to have made the discovery that all new babies are given a free £250 voucher from the the State to place in a Child Trust Fund. Your son or daughter’s vouchermay be invested in any one of threevarieties of CTF account, Stakeholder - a shares-based account that switchesinto cash, a savings account or a shares account. It is an excellent way to prepare life of a youngster
Scottish Friendly is a designated provider of the Child Trust Fund Voucher. The State is keen for the general public to have access to Stakeholder accounts and this is the form of account that we supply. This means that:
• Investments are paid into our Managed Growth Fund, which aims to provide good growth potential
• An investment is made partly in shares to take advantage of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares candecrease as well as rise whereas capital would be protected in a deposit account)
• It comes with a low ‘Stakeholder’ funds charge of just 1.5% per year
• When reaching 18 the young person will receive a lump sum, wholly free of Capital Gains and Income Tax under current law
• It is affordable - additional payments can be placed in the account from as little as £10
One of the great attractions of the Child Trust Fund is that anyone - parents, grandparents, aunts and uncles, friends - if they want can contribute to the Fund to a top limit of £1,200 per year to help augment the child’s Fund (once added, this money is not able to be withdrawn).
What this means is that our Stakeholder account offers a good balance between possible high returns and a reduced level of risk. There’s also the extra assurance that our account complies with the Government’s stakeholder criteria. However this does not mean that returns are assured or that Stakeholder accounts are appropriate for everyone. Remember that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can go down as well as rise and is not guaranteed.
Only children whose birthday is on or after 1st September 2002 are eligible to open a Child Trust Fund. If you have children born before the {1st of September 2002 who are not eligible you could consider investing for them with a Child Bond - it’s a tax-free savings plan intended for long-term growth. The fact is that saving for your daughter is a rewarding means of preparing for the future.
