Save Your Totally Free Children Trust Fund Voucher with Scottish Friendly, so Your Litte One Can Have a Huge Lump Sum of Money when They Grow up
Have you heard the news about the Child Trust Fund? A remarkably
small number of parents appear to realise that all new babies are given a free £250 voucher from the the State to put. The vouchercan 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 great opportunity to invest life of a young person
Scottish Friendly is an accredited provider of the Child Trust Fund Voucher. The Government is keen for the public to have access to Stakeholder accounts and this is the kind of account that we are offering. This means that:
• Investments are paid into Scottish Friendly’s Managed Growth Fund, which intends to provide strong growth potential
• An investment is made in part in shares to make the most 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 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, entirely free of Capital Gains and Income Tax under prevailing legislation
• It is very affordable – extra payments can be placed in the account from as little as £10
A particularly advantageous aspect of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – if they want can contribute to the Fund to a ceiling of £1,200 per year to help increase the child’s Fund (once added, this money may not be withdrawn).
Put succinctly 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 meets with the Government’s stakeholder criteria. Nonetheless 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 held) can go down as well as go up and is not guaranteed.
Only infants born on or after 1st September 2002 are authorised to open a Child Trust Fund. If you have older children who are not qualified you could look at investing for them with a Child Bond – it’s a tax-free savings plan aiming for long-term growth. It is undoubtedly the case that investing for a child is a rewarding means of preparing for the future.
