Put away Your Free Children Trust Fund Voucher with Scottish Friendly, so Your Child Can Have a Huge Lump Sum of Money when They Reach Adulthood
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 markedly
sparse number of parents appear to know about the fact that all new babies are given a free £250 voucher from the the State to invest. 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 needs of a infant
Scottish Friendly is an authorised 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 kind of account that we are offering. This means that:
• Investments go into our Managed Growth Fund, which hopes to provide good growth potential
• It invests 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 cango down as well as increase whereas capital would be protected in a deposit account)
• It is available with a low ‘Stakeholder’ funds charge of just 1.5% per year
• At age 18 the young person will receive a lump sum, wholly free of Capital Gains and Income Tax under present law
• It’s affordable – additional payments can be put in the account from as little as £10
An attractive feature of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – can add to the Fund to a ceiling of £1,200 per year to help augment the child’s Fund (once added, this money may not be withdrawn).
In a nutshell our Stakeholder account offers a good balance between potentially high returns and a lower level of risk. There’s also the extra assurance that our account complies with the Government’s stakeholder criteria. Nevertheless this doesn’t mean that returns are guaranteed or that Stakeholder accounts are appropriate for everyone. Bear in mind 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 isn’t guaranteed.
Only children whose birthday is on or after 1st September 2002 are entitled to start up a Child Trust Fund. If you have children born before the {1st of September 2002 who are not eligible you could think about investing for them with a Child Bond – it’s a tax-free savings plan aiming for long-term growth. It is undoubtedly the case that investing for a child is a rewarding means of preparing for tomorrow.
