Save Your Totally Free Children Trust Fund Voucher with Scottish Friendly, so Your Litte One Can Have a Large Lump Sum when They Reach Adulthood
Posted on 07 Mar 2009 | Tagged as: Finance Resources
Are you aware of the Child Trust Fund and its benefits? Few UK parents startling
sparse number of parents appear to realise that all infants 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 threetypes 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 needs of a child
Scottish Friendly is an approved provider of the Child Trust Fund Voucher. The State is keen for the public at large to have access to Stakeholder accounts and this is the form of account that we offer. This means that:
• Investments go into our Managed Growth Fund, which aims 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 candecrease as well as go up 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 child will receive a lump sum, entirely free of Capital Gains and Income Tax under present law
• It is very 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 – if they want can give to the Fund to a ceiling of £1,200 per year to help augment the child’s Fund (once added, this money is not able to be withdrawn).
In a nutshell our Stakeholder account provides a good balance between potentially high returns and a lower level of risk. There’s also the additional assurance that our account meets with the Government’s stakeholder criteria. Nevertheless this does not mean that returns are guaranteed or that Stakeholder accounts are suitable for everyone. Bear in mind that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is held) can fall as well as go up and isn’t guaranteed.
Only infants whose birthday is on or after 1st September 2002 are permitted to open a Child Trust Fund. If you have older kids who are not entitled 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 evident that investing for a child is a rewarding means of preparing for tomorrow.
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