Save Your Totally Free Children Trust Fund Voucher with Scottish Friendly, so Your Child Can Have a Huge Lump Sum when They Turn 18
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 surprisingly
sparse number of parents appear to know about the fact that all newborn children receive a free £250 voucher from the the State to put. The vouchermay be invested in any one of threevarieties of CTF account, Stakeholder – a shares-based account that changesinto cash, a savings account or a shares account. It is an excellent way to invest life of a young person
Scottish Friendly is a licensed provider of the Child Trust Fund Voucher. The Government is keen for the public at large to have access to Stakeholder accounts and this is the sort of account that we are catering for. This means that:
• Investments are sent into our Managed Growth Fund, which intends to provide strong 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 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 only 1.5% per year
• When attaining the age of 18 the young person will get a lump sum, wholly free of Capital Gains and Income Tax under present legislation
• It’s affordable – extra payments can be put in the account from as little as £10
A notable attraction of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – may contribute to the Fund to a top limit of £1,200 per year to help augment the child’s Fund (once added, this money cannot be withdrawn).
What this means is that our Stakeholder account provides a good balance between potentially high returns and a reduced level of risk. There is also the extra assurance that our account complies with the Government’s stakeholder criteria. Nonetheless this does not mean that returns are guaranteed or that Stakeholder accounts are suitable for everyone. Remember that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is held) can go down as well as increase and is not guaranteed.
Only children who were born on or after 1st September 2002 are qualified to start up a Child Trust Fund. If you have older kids who are not eligible you could contemplate investing for them with a Child Bond – it’s a tax-free savings plan intended for long-term growth. It is undoubtedly the case that investing for your son is a sensible means of preparing for the world to come.
