Invest Your Totally Free Child Trust Fund Voucher with Scottish Friendly, so Your Son or Daughter Can Have a Large Lump Sum of Money when They Turn 18
Heard about the Child Trust Fund? Hardly any mothers and fathers surprisingly
small number of parents appear to know about the fact that all infants are given a free £250 voucher from the the State to place in a Child Trust Fund. The 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 for the future needs of a youngster
Scottish Friendly is an approved provider of the Child Trust Fund Voucher. The Government is eager for people to have access to Stakeholder accounts and this is the kind of account that we are supplying. This means that:
• Investments go into our Managed Growth Fund, which aims to provide good growth potential
• It invests in part in shares to get the benefit of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares candecrease 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 attaining the age of 18 the child will get a lump sum, totally free of Capital Gains and Income Tax under current law
• It is very affordable - extra payments can be put in the account from only £10
One of the highights of the Child Trust Fund is that anyone - parents, grandparents, aunts and uncles, friends - may add to the Fund to a maximum of £1,200 per year to help boost the child’s Fund (once added, this money cannot be withdrawn).
All this means our Stakeholder account offers 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. However 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 fall as well as go up and is not guaranteed.
Only infants who were born on or after 1st September 2002 are entitled to open a Child Trust Fund. If you have older children who are not entitled you could contemplate investing for them with a Child Bond - it’s a tax-free savings plan intended for long-term growth. The fact is that saving for your daughter is a sound means of preparing for hard times that may lie ahead.
