Save Your Free Child Trust Fund Voucher with Scottish Friendly, so Your Litte One Can Have a Large Lump Sum of Money when They Turn Eighteen
Are you aware of the Child Trust Fund and its benefits? Few UK parents remarkably
modest number of parents appear to appreciate that all newborn children receive a free £250 voucher from the the State to invest. Your son or daughter’s 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 save needs of a child
Scottish Friendly is a designated provider of the Child Trust Fund Voucher. The Government is keen for people to have access to Stakeholder accounts and this is the kind of account that we are supplying. This means that:
• Investments are saved into Scottish Friendly’s Managed Growth Fund, which seeks to provide good growth potential
• An investment is made partly in shares to get the benefit 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 child will get a lump sum, completely free of Capital Gains and Income Tax under current law
• It’s affordable – extra payments can be placed in the account from as little as £10
An interesting feature of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – may add to the Fund to a top limit of £1,200 per year to help increase the child’s Fund (once added, this money is not allowed to be withdrawn).
In a nutshell our Stakeholder account provides a good balance between potentially high returns and a lower level of risk. There’s also the extra assurance that our account is in accordance with with the Government’s stakeholder criteria. Nonetheless this doesn’t mean that returns are assured 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 who were born on or after 1st September 2002 are allowed to open a Child Trust Fund. If you have children born before the {1st of September 2002 who are not qualified you could consider investing for them with a Child Bond – it’s a tax-free savings plan looking for long-term growth. It is undoubtedly the case that investing for your children is a sound means of preparing for tomorrow.
