Invest Your Free Child Trust Fund Voucher with Scottish Friendly, so Your Precious Ones Can Have a Large Lump Sum when They Turn Eighteen
So what is this Child Trust Fund that all the talk is about?Are you one of the lucky people who are in the know about the Child Trust Fund? Are you clued up on the Child Trust Fund? Few UK parents markedly
sparse number of parents seem to appreciate that all babies are given a free £250 voucher from the government to put. The vouchercan be invested in any one of threevarieties of CTF account, Stakeholder – a shares-based account that changesinto cash, a savings account or a shares account. It is a great opportunity to save life of a young person
Scottish Friendly is a licensed provider of the Child Trust Fund Voucher. The Government is eager for the general public to have access to Stakeholder accounts and this is the type of account that we are catering for. This means that:
• Investments are paid into Scottish Friendly’s Managed Growth Fund, which hopes to provide strong growth potential
• An investment is made partly in shares to take advantage 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 only 1.5% per year
• When reaching 18 the child will receive a lump sum, wholly free of Capital Gains and Income Tax under present law
• It’s affordable – additional payments can be placed in the account from as little as £10
A key feature of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – if they want can add to the Fund to a top limit of £1,200 per year to help boost the child’s Fund (once added, this money is not allowed to be withdrawn).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 provides a good balance between possible high returns and a reduced level of risk. There is also the additional assurance that our account is in accordance with with the Government’s stakeholder criteria. Nevertheless this does not 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 invested) can go down as well as rise and is not guaranteed.
Only children who were born on or after 1st September 2002 are entitled to start up a Child Trust Fund. If you have children born before the {1st of September 2002 who are not qualified you could contemplate investing for them with a Child Bond – it’s a tax-free savings plan intended for long-term growth. There can be no doubt that investing for your children is a sound means of preparing for possible future credit crunches.
