What the Child Trust Fund Can Do for Your 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 Builds a Sound Financial Foun
Have you got to grips with the Child Trust Fund and the benefits that it can bestow upon your kids?Not many UK parents remarkably
modest number of parents seem to appreciate that all newborn children get a free £250 voucher from the the State to place in a Child Trust Fund. The child’s vouchercan be invested in any one of threekinds of CTF account, Stakeholder - a shares-based account that switchesinto cash, a savings account or a shares account. It is a superb chance to invest financial requirements of a infant
Scottish Friendly is an approved provider of the Child Trust Fund Voucher. The Government is keen for the public to have access to Stakeholder accounts and this is the sort of account that we are catering for. This means that:
• Investments are saved into our Managed Growth Fund, which aims to provide strong 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 rise whereas capital would be protected in a deposit account)
• It comes with a low ‘Stakeholder’ funds charge of only 1.5% per year
• At age 18 the child will get a lump sum, entirely free of Capital Gains and Income Tax under present law
• It’s affordable - extra payments can be placed in the account from only £10
A particularly advantageous aspect of the Child Trust Fund is that anyone - parents, grandparents, aunts and uncles, friends - if they want can contribute to the Fund to a ceiling of £1,200 per year to help boost the child’s Fund (once added, this money is not allowed to be withdrawn).
What this means is that our Stakeholder account provides a good balance between possible high returns and a lower level of risk. There is also the extra assurance that our account complies with the Government’s stakeholder criteria. However 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 rise and isn’t guaranteed.
Only children born on or after 1st September 2002 are permitted to open a Child Trust Fund. If you have children born before the {1st of September 2002 who are not entitled you could think about saving 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 sound means of preparing for tomorrow.