The future of your child son or daughter,How 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 really adds up for yourson or daughter,New UK
Are you aware of the Child Trust Fund and its benefits?Not many UK parents remarkably
low number of parents appear to appreciate that all new babies receive a free £250 voucher from the government to put. This vouchermay be invested in any one of threesorts of CTF account, Stakeholder – a shares-based account that swapsinto cash, a savings account or a shares account. It is an excellent way to for the future financial requirements of a infant
Scottish Friendly is an approved provider of the Child Trust Fund Voucher. The State is eager 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 saved into Scottish Friendly’s Managed Growth Fund, which hopes to provide good growth potential
• An investment is made partly in shares to make the most of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares canfall as well as go up whereas capital would be protected in a deposit account)
• It comes with a low ‘Stakeholder’ funds charge of only 1.5% per year
• When reaching 18 the young person will receive a lump sum, totally free of Capital Gains and Income Tax under present legislation
• It is affordable – extra payments can be put in the account from only £10
One of the highights of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – may give to the Fund to an uppermost limit of £1,200 per year to help augment the child’s Fund (once added, this money is not allowed to be withdrawn).
Put succinctly our Stakeholder account provides a good balance between possible high returns and a lower level of risk. There is also the additional assurance that our account meets with the Government’s stakeholder criteria. However this does not mean that returns are assured or that Stakeholder accounts are suitable for everyone. Bear in mind that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is placed) can go down as well as go up and isn’t guaranteed.
Only infants born on or after 1st September 2002 are authorised to open a Child Trust Fund. If you have above-mentioned date who are not entitled you could think about saving for them with a Child Bond – it’s a tax-free savings plan looking for long-term growth. There can be no doubt that investing for a child is a sensible means of preparing for tomorrow.
