February 12th, 2009
What the Child Trust Fund Can Do for Your Son or Daughter,How to Invest the Two Hundred and Fifty Poundschild Trust Fund Voucher,Invest Your Free Child Trust Fund Voucher with Scottish Friendly,Investing in a Child Trust Fund Really Adds up for Yourson or
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?Not many UK parents startling
insubstantial number of parents seem to have heard of the fact that all newly born babies are given a free £250 voucher from the government to put. The child’s vouchermay be invested in any one of threevarieties of CTF account, Stakeholder – a shares-based account that swapsinto cash, a savings account or a shares account. It is an excellent way to save needs of a youngster
Scottish Friendly is an authorised provider of the Child Trust Fund Voucher. The State is keen for people to have access to Stakeholder accounts and this is the type of account that we are offering. This means that:
• Investments go into Scottish Friendly’s Managed Growth Fund, which hopes to provide strong 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 comes with a low ‘Stakeholder’ funds charge of only 1.5% per year
• At age 18 the child will get a lump sum, wholly free of Capital Gains and Income Tax under prevailing law
• It’s 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 – 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to the Fund to a top limit of £1,200 per year to help boost the child’s Fund (once added, this money is not able to be withdrawn).
In a nutshell our Stakeholder account offers a good balance between potentially 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. Nonetheless 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 go down as well as increase and is not guaranteed.
Only infants whose birthday is 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 eligible you could consider 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 daughter is a sound means of preparing for the world to come.
