What the Child Trust Fund Can Do for Your Child,How to Invest the 250 Poundschild Trust Fund Voucher,Invest Your Totally Free Child Trust Fund Voucher with Scottish Friendly,Investing in a Child Trust Fund Builds a Sound Financial Foundation for Yourson O
Have you heard the news about the Child Trust Fund?A startling
small number of parents appear to know about the fact that all newborn children are given a free £250 voucher from the the State to place in a Child Trust Fund. Your son or daughter’s vouchermay be invested in any one of threesorts of CTF account, Stakeholder – a shares-based account that changesinto cash, a savings account or a shares account. It is a superb chance to save financial requirements of a young person
Scottish Friendly is an accredited provider of the Child Trust Fund Voucher. The State is eager for the public to have access to Stakeholder accounts and this is the kind of account that we provide. This means that:
• Investments are deposited into Scottish Friendly’s Managed Growth Fund, which aims to provide strong growth potential
• It invests in part 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 comes with a low ‘Stakeholder’ funds charge of just 1.5% per year
• When reaching 18 the young person will receive a lump sum, entirely free of Capital Gains and Income Tax under current legislation
• It is very affordable – additional payments can be put in the account from only £10
A particularly advantageous aspect 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to an uppermost limit of £1,200 per year to help boost the child’s Fund (once added, this money is not allowed to be withdrawn).
All this means our Stakeholder account offers a good balance between possible high returns and a lower level of risk. There is also the additional 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 placed) can decrease as well as rise and is not guaranteed.
Only infants whose birthday is on or after 1st September 2002 are permitted to open a Child Trust Fund. If you have above-mentioned date who are not allowed you could look at investing for them with a Child Bond – it’s a tax-free savings plan looking for long-term growth. It is evident that saving for your son is a rewarding means of preparing for the world to come.
