Invest Your Free Children Trust Fund Voucher with Scottish Friendly, so Your Child Can Have a Huge Lump Sum when They Turn Eighteen
Have you heard the news about the Child Trust Fund? Not many UK parents markedly
small number of parents appear to have heard of the fact that all new babies get a free £250 voucher from the government to place in a Child Trust Fund. This vouchercan 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 an excellent way to save financial requirements of a child
Scottish Friendly is an approved provider of the Child Trust Fund Voucher. The Government is keen for the general public to have access to Stakeholder accounts and this is the type of account that we are supplying. This means that:
• Investments are deposited into our Managed Growth Fund, which seeks to provide strong growth potential
• It invests partly 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 rise whereas capital would be protected in a deposit account)
• It is available with a low ‘Stakeholder’ funds charge of just 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
A particularly advantageous aspect of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – may add to the Fund to an uppermost limit of £1,200 per year to help boost the child’s Fund (once added, this money may not be withdrawn).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 lower level of risk. There is 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 placed) can fall as well as increase and isn’t guaranteed.
Only children born on or after 1st September 2002 are permitted to start up a Child Trust Fund. If you have children born before the {1st of September 2002 who are not allowed you could think about investing for them with a Child Bond – it’s a tax-free savings plan intended for long-term growth. It is evident that saving for your son is a rewarding means of preparing for the world to come.
