Save Your Totally Free Children Trust Fund Voucher with Scottish Friendly, so Your Son or Daughter Can Have a Large Lump Sum when They Turn Eighteen
Have you heard the news about the Child Trust Fund? A remarkably
low number of parents appear to appreciate that all newly born babies receive a free £250 voucher from the the State to put. The vouchermay be invested in any one of threekinds of CTF account, Stakeholder – a shares-based account that changesinto cash, a savings account or a shares account. It is a superb chance to prepare life of a young person
Scottish Friendly is an authorised provider of the Child Trust Fund Voucher. The Government 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 paid into our Managed Growth Fund, which aims to provide good growth potential
• An investment is made 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 is available with a low ‘Stakeholder’ funds charge of only 1.5% per year
• At age 18 the young person will get a lump sum, totally free of Capital Gains and Income Tax under present legislation
• It is affordable – extra payments can be put in the account from as little as £10
One of the great attractions of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – may contribute 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the Fund to a top limit of £1,200 per year to help boost the child’s Fund (once added, this money is not allowed to be withdrawn).
In a nutshell our Stakeholder account offers a good balance between possible high returns and a reduced level of risk. There’s also the extra assurance that our account meets with the Government’s stakeholder criteria. Nevertheless this does not mean that returns are assured 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 invested) can fall as well as rise and is not guaranteed.
Only infants who were born on or after 1st September 2002 are eligible to start up a Child Trust Fund. If you have older kids who are not allowed you could think about saving for them with a Child Bond – it’s a tax-free savings plan intended for long-term growth. It is undoubtedly the case that saving for your children is a sound means of preparing for possible future credit crunches.
