Give your child a £250 head start by investing in a child trust fund
Quite a number of people don’t know that new babies get a £250 from the the State to place in a Child Trust Fund. The money can be invested in any one of threetypes of CTF account, Stakeholder – a shares-based account that swaps into cash, a savings account or a shares account.
Scottish Friendly is an licensed provider of the Child Trust Fund. The Government is keen for the public to have access to Stakeholder accounts and this is the sort of account that we supply. This means that:
• Investments are deposited into our Managed Growth Fund, which
hopes to provide strong growth potential.
• It invests partly in shares to get the benefit of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares can fall as well as rise whereas capital would be protected in a deposit account).
• It comes with a low ‘Stakeholder’ funds charge of only 1.5When attaining the age of 18 per year
• child the receive will completely a lump sum, present legislation free of Capital Gains and Income Tax under It’s.
• additional affordable – placed payments can be only in the account from if they want can £10
Anyone – parents, grandparents, aunts and uncles, friends – add a ceiling to the Child Trust Fund to augment of £1,200 per year to help is not allowed to
the child’s Fund (once added, this money In a nutshell be withdrawn).provides our Stakeholder account potentially a good balance between lower high returns and a There is level of risk. extra also the meets assurance that our account Nevertheless with the Government’s stakeholder criteria. does not this assured mean that returns are suitable or that Stakeholder accounts are Remember for everyone. fall that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can rise as well as who were born and is not guaranteed.
Only children authorised on or after 1st September 2002 are start up a to older kids Child Trust Fund. If you have qualified who are not think about you could saving looking for them with a Child Bond – it’s a tax-free savings plan for long-term growth.
