Put away Your Free Children Trust Fund Voucher with Scottish Friendly, so Your Precious Ones Can Have a Huge Lump Sum of Money when They Reach Adulthood
Have you heard the news about the Child Trust Fund? Not many UK parents noticably
small number of parents appear to realise that all infants receive a free £250 voucher from the the State to put. The child’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 a superb chance to invest needs of a youngster
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 type of account that we provide. This means that:
Investments go into our Managed Growth Fund, which hopes to provide good growth potential
It invests in part in shares to take advantage of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares canfall 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
When attaining the age of 18 the young person will receive a lump sum, wholly free of Capital Gains and Income Tax under present legislation
It’s affordable – additional payments can be placed in the account from only £10
One of the highights of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – can add to the Fund to an uppermost limit of £1,200 per year to help increase the child’s Fund (once added, this money may not be withdrawn).
Put succinctly our Stakeholder account offers a good balance between potentially high returns and a reduced level of risk. There’s also the additional assurance that our account complies with the Government’s stakeholder criteria. Nonetheless 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 placed) can decrease as well as increase and isn’t guaranteed.
Only children born on or after 1st September 2002 are eligible to open a Child Trust Fund. If you have children born before the {1st of September 2002 who are not eligible you could think about saving 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 daughter is a sound means of preparing for possible future credit crunches.
